Brittany Higgins has been declared bankrupt after her former boss, Linda Reynolds, successfully sued her for defamation. A Western Australian court approved the application to sequestrate Higgins's estate on Friday, bringing Reynolds closer to tracing a $2.4m compensation payout.
Federal Court judge Michael Feutrill made orders under the Bankruptcy Act, with the act of bankruptcy backdated to 8 October. Reynolds's lawyer Rachel Ross said the estate would be handed to a trustee, who would control Higgins's affairs and deal with creditors.
Reynolds was awarded $315,000 in damages plus $26,109 interest after the Supreme Court of Western Australia found social media posts by Higgins were defamatory. Higgins was also ordered to pay 80% of Reynolds's legal costs, estimated at more than $1m. Reynolds said she had not taken the step lightly and that Higgins had failed to engage or pay any damages.
The trustee will now investigate Higgins's financial affairs, including what happened to her $2.4m Commonwealth settlement. Arthur Carney, a partner at Carneys Legal, said the trustee could sell properties, investigate trusts or overseas funds, and garnish earnings. Legitimately spent money, such as on legal bills or her wedding, could not be recouped.
The defamation trial followed Higgins's allegations of rape against Bruce Lehrmann, which were not part of the defamation case. Justice Paul Tottle found Higgins had made false or misleading statements. Lehrmann denies the allegation and has flagged an appeal to the High Court. Higgins's husband, David Sharaz, has also been served with a bankruptcy notice.
