Former political staffer Brittany Higgins and her partner, ex-journalist David Sharaz, have both been declared bankrupt in the Federal Court, following a high-profile defamation victory by their former boss, ex-Defence Minister Linda Reynolds.
Court Orders Sequestration of Estates
Just days after Higgins was declared bankrupt in a Perth court, the same fate befell Sharaz. On Tuesday, Registrar Camille Goucke ordered that Sharaz's estate be sequestrated under the Bankruptcy Act. The court also fixed Reynolds' costs for this proceeding at $5,690.
The act of bankruptcy was backdated to 31 October 2024. This legal status means a court-appointed trustee, Daniel Juratowitch, now takes control of both Sharaz and Higgins's estates and assets. The trustee will determine if any assets must be sold to pay creditors and can also garnish earnings.
Background of the Defamation Dispute
The bankruptcy declarations are the culmination of a long-running legal battle. Reynolds, a former Liberal senator, launched bankruptcy proceedings against the couple in October after successfully suing them for defamation over social media posts.
In a September judgment, the Western Australian Supreme Court ordered Sharaz to pay $92,000 in damages for posts found to be defamatory against Reynolds. He was served a bankruptcy notice at a Melbourne cafe on 10 October. Sharaz was also found jointly responsible for another defamatory tweet and is liable for Reynolds' legal costs on an indemnity basis, a sum expected to exceed $500,000.
In April 2024, Sharaz announced he would no longer fight the case due to an inability to afford legal fees. Higgins' separate trial proceeded, resulting in her being ordered to pay $135,000 plus interest.
Implications and Wider Context
Bankruptcy typically lasts for three years and carries significant reputational damage and restrictions on obtaining credit. The trustee will now assess the couple's complex financial affairs.
The defamation case centred on social media posts that Reynolds argued damaged her reputation. In a 360-page judgment, Justice Paul Tottle agreed, finding the posts carried imputations that Reynolds harassed Higgins, mishandled her rape allegation, and acted questionably during Bruce Lehrmann's aborted criminal trial.
The case is linked to Higgins' allegation that she was raped by colleague Bruce Lehrmann in Reynolds' Parliament House office in 2019. Lehrmann's criminal trial was abandoned in 2022 due to juror misconduct; he has always maintained his innocence. However, in a separate civil case, Justice Michael Lee found on the balance of probabilities that Higgins was raped by Lehrmann.
This bankruptcy ruling marks a stark financial and legal conclusion to a chapter of the highly publicised saga that has captivated Australian politics and media for years.
