Reynolds Pursues Bankruptcy for Sharaz Following Defamation Case Ruling
A former Australian senator is seeking to bankrupt the husband of Brittany Higgins, weeks after winning a high-profile defamation case and securing a substantial damages order against the couple. The legal action underscores the financial fallout from the protracted legal battle stemming from allegations concerning the handling of a sexual assault claim.
On Monday, through her legal representatives at Bennett, former Western Australian Senator Linda Reynolds filed an submission in the WA registry of the Federal Court for substituted service of bankruptcy notice against David Sharaz. This legal maneuver initiates proceedings that, if successful, would lead to the sequestration of Mr. Sharaz’s estate and the management of his financial affairs by an external trustee.
A web conference hearing before Registrar Russell Trott is scheduled for October 15 to address the application.
The defamation case centered on a series of social media posts made in 2022 and 2023 by Ms. Higgins, alleging that Ms. Reynolds mishandled her claim of being sexually assaulted by a colleague, Bruce Lehrmann, at Parliament House in canberra in 2019. Justice Paul tottle ultimately ruled in favor of Ms. Reynolds in August, following a lengthy trial.
The financial consequences for Ms. Higgins and Mr. Sharaz are significant. Justice Tottle ordered Ms. higgins to pay $315,000 in damages, plus over $26,000 in interest. Mr. Sharaz was ordered to pay up to $220,000 in damages, broken down as $85,000 personally and $135,000 jointly with Ms. Higgins. moreover, Ms. Higgins was ordered to cover 80% of Ms. Reynolds’ legal bills, which the former senator has described as totaling “millions” of dollars.
ms. Reynolds is pursuing an order for costs that would cover all reasonable expenses incurred during the legal proceedings. She initially sought a lump sum of $490,000, or a special costs order removing standard limits, but Justice Tottle rather opted for an indemnity basis for costs – a rare award reserved for cases where the defendant acted unreasonably. This means Mr. Sharaz will be responsible for the full extent of Ms. Reynolds’ legal expenses.
Reports indicate the couple has already been forced to sell their French chateau, reportedly for an estimated $700,000, to alleviate financial pressure.Ms. higgins had previously made a $200,000 settlement offer before the trial, but it was rejected by Ms. Reynolds as unreasonable, in part because it was only open for acceptance for three days. Ms. Higgins is currently appealing both the damages bill and the costs order.
The civil action unfolded against the backdrop of a separate criminal investigation into the alleged assault. mr. Lehrmann’s 2022 trial was ultimately aborted due to juror misconduct, and the charges were later dropped.
Why: former Senator Linda Reynolds is pursuing bankruptcy against David Sharaz due to the substantial financial penalties imposed on him and his wife, Brittany Higgins, following a defamation case win by Reynolds. The couple is unable to meet the financial obligations.
Who: The key individuals involved are Linda Reynolds (the plaintiff in the defamation case and the party pursuing bankruptcy), David Sharaz (the defendant
