A former Liberal senator's attempt to recover legal costs from Brittany Higgins has been delayed by a bankruptcy paperwork glitch. Linda Reynolds successfully sued Higgins for defamation over social media posts, winning damages of $315,000 plus interest and an order for Higgins to pay 80% of her legal costs, estimated at over $1m.
Reynolds launched bankruptcy proceedings in October to recoup the costs. However, a federal court hearing on Tuesday, expected to result in Higgins being declared bankrupt, was adjourned due to a technical issue with the paperwork.
Speaking outside court, Reynolds' lawyer Martin Bennett expressed frustration that Higgins had received a $2.4m taxpayer-funded compensation payout but had paid nothing towards the judgment. “Ms Higgins is saying she personally has no money, but where is the $2.4m?” he said. If Higgins is declared bankrupt, a trustee could investigate a trust Reynolds alleges was used to protect the payout.
The defamation case stemmed from social media posts Higgins made after her alleged rape by former colleague Bruce Lehrmann. Justice Paul Tottle found the posts carried imputations that Reynolds mishandled the rape allegation and engaged in a campaign of harassment. The judgment also found Higgins made 26 false or misleading statements in media interviews.
Higgins' husband, David Sharaz, who was also found to have defamed Reynolds and ordered to pay $85,000 in damages plus costs, has been served a bankruptcy notice and is expected to declare bankruptcy. The bankruptcy matter for Higgins will return to court next Tuesday.
