David Sharaz has been declared bankrupt by the Federal Court of Australia, just days after his wife, Brittany Higgins, faced a similar fate. The ruling, made on October 31, 2023, follows a defamation case initiated by former Liberal senator Linda Reynolds, who successfully sued the couple for damages.
In a court session on Tuesday, Registrar Camille Goucke ordered that Sharaz’s estate be sequestrated under the Bankruptcy Act. Documents filed in the Western Australian registry indicate that Reynolds’ legal costs in the matter were fixed at $5,690. This ruling marks a significant financial turn for both Sharaz and Higgins.
Bankruptcy entails the appointment of a trustee to manage the bankrupt individual’s estate and assets. The trustee, Daniel Juratowitch, is tasked with evaluating the financial situations of both Sharaz and Higgins. The trustee will decide whether to liquidate any assets to settle debts or garnish earnings. Typically, bankruptcy lasts for three years and carries long-term implications for one’s financial reputation and ability to secure credit.
In September, Sharaz was ordered to pay $92,000 for defamatory social media posts aimed at Reynolds. He received the bankruptcy notice at a café in Melbourne on October 10, 2023, as part of Reynolds’ efforts to collect the damages awarded to her. Sharaz, a former journalist, was also deemed jointly responsible for a tweet deemed defamatory to which Higgins responded.
Further complicating matters, Sharaz was found liable for Reynolds’ legal costs on an indemnity basis, with the total expected to exceed $500,000. In April 2024, Sharaz announced he would cease fighting the case due to financial constraints. Meanwhile, Higgins’ trial proceeded, resulting in a judgment requiring her to pay $135,000 plus interest.
Reynolds’ defamation victory over Higgins stemmed from a series of social media posts that she claimed damaged her reputation. In a comprehensive 360-page judgment, Justice Paul Tottle supported Reynolds, noting that the allegations included claims of harassment against Higgins and mishandling her rape allegation.
Higgins, while working as a staffer for Reynolds, alleged she was raped by Bruce Lehrmann in the minister’s office. The criminal trial concerning these allegations was abandoned in 2022 due to juror misconduct, although Lehrmann has consistently maintained his innocence. In a separate defamation case against Network Ten, Justice Michael Lee found that there was a high probability that Higgins was raped by her former colleague.
The recent court decisions underscore the ongoing legal battles surrounding both Sharaz and Higgins, with significant financial and reputational ramifications. As the situation develops, the implications for the couple’s future remain uncertain.
