Linda Reynolds has initiated legal action to have David Sharaz, the husband of former staffer Brittany Higgins, declared bankrupt. This move follows a recent ruling by the Supreme Court, where Reynolds won a defamation case against Higgins and Sharaz, resulting in significant financial liabilities for the couple.
The Supreme Court’s ruling in August 2023 mandated Higgins to pay $315,000 in damages, along with more than $26,000 in interest. Sharaz was ordered to pay up to $220,000, which includes $85,000 payable by him alone and $135,000 for which both are jointly liable. The court also ruled that Higgins must cover 80 percent of Reynolds’ legal costs, which are estimated to be in the millions.
On October 9, through her legal representatives Bennett, Reynolds filed an application in the WA registry of the Federal Court of Australia for substituted service of a bankruptcy notice against Sharaz. The court is set to hold a web conference hearing on this matter before Registrar Russell Trott on October 15, 2023.
The court’s decision regarding costs was particularly notable. Justice Paul Tottle opted for an indemnity costs order, which is typically reserved for exceptional circumstances. This decision arose because the court found that Sharaz unreasonably failed to engage in settlement discussions. Notably, Higgins had proposed a $200,000 settlement offer shortly before the trial, which the court deemed inadequate due to its limited acceptance period of just three days.
Higgins and Sharaz’s civil action stemmed from a series of social media posts made in 2022 and 2023, where Higgins accused Reynolds of mishandling her allegation of being raped by colleague Bruce Lehrmann in Parliament House in Canberra in 2019. While Higgins secured a settlement of $2.4 million with the Federal Government regarding her claims, the couple has faced financial difficulties, including reportedly selling their chateau in France for an estimated $700,000.
The legal battles continue, as Higgins is appealing both the damages awarded and the costs order imposed by the court. Reynolds’ pursuit of bankruptcy for Sharaz adds another layer of complexity to an already contentious legal landscape.
This ongoing case highlights the significant financial and personal ramifications stemming from allegations of misconduct and the judicial outcomes that follow.
