UPDATE: Brittany Higgins has been officially declared bankrupt following a critical ruling from the Federal Court regarding her defamation case against former boss Linda Reynolds. This ruling, issued on October 8, allows Reynolds to recover substantial debts owed to her, marking a significant turn in a long-standing legal battle.
The court’s decision comes after Higgins was ordered to pay Reynolds upwards of $341,000 in damages, with total legal costs likely exceeding $1 million. This bankruptcy ruling is a direct result of Higgins’ failure to comply with a bankruptcy notice, as argued by Reynolds’ attorney, Martin Bennett, during a hearing earlier this week.
According to court documents released on Friday morning, Federal Court Justice Michael Feutrill backdated the bankruptcy order to October 8, placing Higgins’ estate under the control of a trustee. Reynolds’ legal costs, fixed at $6,330, are to be paid from Higgins’ estate, further complicating her financial situation.
This ruling follows a tumultuous series of events that began with Higgins’ allegations of rape by her colleague Bruce Lehrmann in March 2019, which has since led to numerous legal disputes. Earlier this year, Higgins received a $2.4 million compensation payment from the Commonwealth, now central to the bankruptcy proceedings.
The court was informed that Higgins had previously cited mental health issues as reasons for not testifying in the defamation trial, relying instead on findings from a separate defamation case against Network Ten and journalist Lisa Wilkinson, which Lehrmann lost.
The bankruptcy ruling represents a decisive moment in this ongoing saga, especially after Higgins opted to drop her appeal against the defamation judgment last month, paving the way for Reynolds’ creditor action to move forward.
As this situation continues to develop, all eyes remain on the implications for Higgins and the management of her assets, which are now under scrutiny. The emotional toll of this legal battle underscores the complexities of the case, resonating deeply with many observers.
Stay tuned as we continue to follow these urgent developments in this high-profile case.
