David Sharaz has been declared bankrupt by the federal court in Perth, just days after his wife, Brittany Higgins, faced a similar fate. The ruling stems from a defamation lawsuit brought by former Liberal senator Linda Reynolds, who successfully sued the couple and initiated bankruptcy proceedings in October 2023.
On October 31, 2023, registrar Camille Goucke ordered the sequestration of Sharaz’s estate under the bankruptcy act. Reynolds’ legal costs were fixed at $5,690, as confirmed by court documents filed in the Western Australian registry. The act of bankruptcy has significant implications, as it allows a court-appointed trustee to manage the bankrupt’s estate and assets, determining whether to liquidate assets to satisfy creditor claims.
Bankruptcy typically lasts for three years and carries reputational consequences, affecting future credit opportunities. Daniel Juratowitch has been appointed as the trustee to oversee the financial matters of both Sharaz and Higgins.
The court’s decision follows an earlier ruling in which Sharaz was ordered to pay $92,000 for defamatory social media posts directed at Reynolds. He received the bankruptcy notice at a Melbourne café on October 10, 2023, as part of Reynolds’ efforts to enforce the damages awarded to her.
In addition to his individual liability, Sharaz was found jointly responsible for a defamatory tweet to which Higgins had responded. He also incurred liability for Reynolds’ legal costs, which are anticipated to exceed $500,000 when finalized.
In April 2024, Sharaz announced he would cease contesting the case due to financial constraints regarding legal fees. Higgins, on the other hand, proceeded with her trial, resulting in a court order for her to pay $135,000 plus interest.
Reynolds’ successful defamation claim against Higgins revolved around several social media posts that she argued harmed her reputation. In a comprehensive 360-page judgment, Justice Paul Tottle sided with Reynolds, affirming that the allegations included claims of harassment against Higgins and mismanagement of her rape allegations during the trial of Bruce Lehrmann, who has consistently denied the charges.
Higgins had alleged that she was raped by Lehrmann in Reynolds’ Canberra office while working as a staff member. The criminal trial regarding these allegations was dropped in 2022 due to juror misconduct. A subsequent defamation case launched by Lehrmann against Network Ten found that, on the balance of probabilities, Higgins was raped by her former colleague in the office.
The ramifications of these recent court decisions extend beyond legal penalties, with both Sharaz and Higgins facing significant personal and public challenges in the aftermath of the rulings.
