He knew there was always a chance, but now he has the paper to prove it. Parliamentary Secretary to the Prime Minister Malcolm Turnbull has been sued over his alleged involvement in the 2001 collapse of HIH.

Two years after first filing the $400 million claim, liquidator Tony McGrath has also served a writ on merchant bank Goldman Sachs, which Mr Turnbull chaired. Other companies receiving writs are General Reinsurance Australia and seven other companies or individuals associated with the HIH takeover of FAI Insurance.

Mr Turnbull says he will vigorously defend himself, although pundits have questioned the impact of the lawsuit on his new political career.