UPDATE: Brittany Higgins has been officially declared bankrupt as the Federal Court intervenes to manage her finances following her significant legal defeat against ex-Liberal senator Linda Reynolds. This urgent ruling, issued on October 8, 2023, allows Reynolds to recover a substantial debt owed to her stemming from a defamation case that has captured national attention.
In a landmark decision made public earlier today, Federal Court Justice Michael Feutrill placed Higgins’ estate into bankruptcy, marking a pivotal moment in the protracted legal battle between the two women. This ruling is a direct result of Higgins’ earlier defamation loss, which ordered her and her husband, David Sharaz, to pay Reynolds upwards of $341,000 in damages, in addition to potentially facing over $1 million in legal costs.
Justice Feutrill fixed Reynolds’ legal fees at $6,330 to be paid out of Higgins’ estate, highlighting the financial consequences of this ongoing dispute. The court directed Reynolds to deliver a copy of the bankruptcy order to trustee Daniel Peter Juratowitch within seven days, emphasizing the swift action required to settle this matter.
This ruling follows a contentious court hearing earlier this week, where Reynolds’ lawyer, Martin Bennett, argued that Higgins had not complied with a previous bankruptcy notice. The validity of the service of this notice was contested, but ultimately deemed appropriate as it was delivered through Higgins’ legal counsel, Carmel Galati.
Higgins has previously sought to defend herself based on mental health grounds, notably during earlier proceedings where she opted not to testify in the Federal Court defamation trial. Instead, she relied on findings from a separate defamation case against Bruce Lehrmann, who was accused of raping her in March 2019 at Parliament House, which he ultimately lost.
The decision to declare bankruptcy follows Higgins’ announcement last month to drop her appeal against the defamation judgment, facilitating the creditor’s actions. The implications of this ruling are significant, as Higgins had previously received a $2.4 million compensation payment from the Commonwealth, with the management of those funds now at the center of the bankruptcy proceedings.
As this situation continues to unfold, the impact on Higgins’ financial future and legal standing remains uncertain. The developments in this case are vital, given its implications for public discussions surrounding sexual assault, defamation, and the legal system in Australia.
Stay tuned for further updates as this story develops.
