Former political staffer Brittany Higgins and her husband, ex-journalist David Sharaz, have both been declared bankrupt following a high-profile legal defeat. The bankruptcy orders were issued in the Federal Court in Perth, initiated by their former employer, ex-Liberal senator Linda Reynolds.
Court Orders and Financial Fallout
Just days after Higgins was declared bankrupt, the court has now made a similar ruling against David Sharaz. On Tuesday, Registrar Camille Goucke ordered that Sharaz's estate be sequestrated under the Bankruptcy Act. The act of bankruptcy was backdated to 31 October. Reynolds' costs for this proceeding were fixed at $5,690.
This legal action stems from a defamation case where Reynolds successfully sued the couple over social media posts. In September, Sharaz was ordered to pay $92,000 in damages for posts the Western Australian Supreme Court found defamed the former defence minister. He was served a bankruptcy notice at a Melbourne cafe on 10 October.
The Defamation Case and Wider Implications
The bankruptcy is a direct consequence of the defamation judgment. Justice Paul Tottle, in a 360-page ruling, found that posts by Higgins and Sharaz carried serious imputations against Reynolds. These included claims she engaged in a campaign of harassment against Higgins and mishandled her rape allegation.
Sharaz was also found jointly responsible for a defamatory tweet to which Higgins replied. He faces a much larger financial burden, as he was found liable for Reynolds' legal costs on an indemnity basis. This total is expected to exceed $500,000 and will be determined later. In April 2024, Sharaz announced he could no longer afford to fight the case.
Higgins' separate trial proceeded, resulting in an order for her to pay $135,000 plus interest. The trustee, Daniel Juratowitch, has now been appointed to assess the financial affairs of both Higgins and Sharaz.
What Bankruptcy Means for the Pair
Bankruptcy is a significant legal status with lasting repercussions. A court-appointed trustee takes control of a bankrupt's estate and assets, deciding whether to sell them to pay creditors. Bankruptcy typically lasts for three years and carries substantial reputational damage. It also severely impacts an individual's ability to obtain credit.
The case has its origins in Higgins' allegation that she was raped by her colleague Bruce Lehrmann in Senator Reynolds' Parliament House office in 2019. Lehrmann's criminal trial was abandoned in 2022 due to juror misconduct, and he has always maintained his innocence. However, in a separate civil case, Justice Michael Lee found on the balance of probabilities that Higgins was raped by Lehrmann.
The bankruptcies mark a dramatic financial and personal conclusion to this chapter of the long-running legal saga, underscoring the severe consequences of defamation in Australia.
