Former political staffer Brittany Higgins faces potential bankruptcy in the Federal Court on Tuesday as her former boss Linda Reynolds seeks to recover over $1 million in legal costs from their defamation battle.
The Creditor Petition and Sequestration Order
According to reports in The Australian, Senator Reynolds has filed a creditors petition against Ms Higgins that will be heard by Judge Craig Colvin in the Perth Federal Court. The petition requests a sequestration order that would place control of Higgins' financial affairs under a trustee.
If granted, this order would make Higgins' finances completely transparent, including revealing details about the $2.4 million compensation payout she received from the Commonwealth in 2022. The court documents indicate Higgins is not expected to appear in person for the hearing, leaving open the possibility that Justice Colvin might defer his decision.
Background of the Defamation Case
The bankruptcy proceedings follow the Western Australia Supreme Court's verdict in August, where Justice Paul Tottle found that Higgins had defamed her former boss on three separate occasions. The court ruled that Higgins successfully defended herself on only one of the four defamation claims at trial.
Justice Tottle awarded Senator Reynolds $315,000 in damages plus $26,109 in interest for the two defamatory statements that were upheld. The judge also made a costs order requiring Higgins to pay 80 percent of Reynolds' legal expenses, estimated to total approximately $1.5 million.
Consequences of Bankruptcy Declaration
Should the court accept the creditor petition, a trustee in bankruptcy would be appointed to take control of all Higgins' financial matters. This trustee would have authority to access her protective trust containing the compensation payout and require full disclosure of her financial affairs.
Reynolds would become the official creditor of the estate, giving her priority in recovering the owed funds. The bankruptcy would also affect Higgins' husband, David Sharaz, who faces a similar hearing scheduled for December 16.
The defamation case originated from social media posts made by Higgins in 2022 and 2023 where she referenced being bullied and refusing to stay silent about her former boss's handling of her rape allegation. Higgins had claimed she was sexually assaulted by colleague Bruce Lehrmann at Parliament House in 2019.
Following the court's verdict, Reynolds told reporters the allegations had devastated her personally and professionally, costing her health and career. Higgins subsequently issued a statement expressing regret for hurting Reynolds' feelings and acknowledging the six-year ordeal since the alleged assault occurred when she was 24 years old.
