Federal Court declares David Sharaz bankrupt over defamation debt to Linda Reynolds

2 months ago 3

Brittany Higgins’ husband David Sharaz has been declared bankrupt by the Federal Court, just days after Higgins herself was placed into bankruptcy over unpaid defamation debts to former WA Liberal senator Linda Reynolds.

Higgins and Sharaz were ordered to pay Reynolds $341,000 in damages and more than $1 million in legal costs in August after Reynolds’s successful defamation action over a series of social media posts from the pair.

David Sharaz has been declared bankrupt by the Perth Federal Court.

After failing to pay the debt, Federal Court registrar Camille Goucke sequestrated Sharaz’s estate on Tuesday morning, with the act of bankruptcy backdated to October 31.

Goucke fixed Sharaz’s legal costs at $5690 and ordered Reynolds to serve a copy of the bankruptcy orders on trustee Daniel Peter Juratowitch within seven days.

Juratowitch is the same trustee appointed to Higgins’ estate.

Last Friday, Higgins was also declared bankrupt, backdated to October 8, with her legal costs fixed at $6330.

The orders are part of a long-running legal dispute between the parties after Higgins was allegedly raped at Parliament House by her colleague Bruce Lehrmann in March 2019.

Outside court on Tuesday, Reynolds’ lawyer Martin Bennett told journalists Sharaz had been personally served with bankruptcy papers at a Melbourne cafe.

Bennett said even if Sharaz was unable to pay the whole debt, the “vindication of Ms Reynolds’ reputation (was) paramount”.

“[Sharaz will] serve out his time for bankruptcy. He’s working, so his income will be assessed, and he’ll be required to make contributions to the estate,” Bennett said.

Linda Reynolds (middle) with lawyer Martin Bennett (right) leaving the WA Supreme Court earlier this year.

“His travel will be restricted. He’ll be required to cooperate with the trustee, and he won’t be able to retain luxury items.”

As trustee, Juratowitch has wide powers to investigate the couple’s finances.

“He’s able to investigate their affairs to determine the truth of their financial circumstances, not the asserted position,” Bennett told journalists.

“So we’ll find out exactly what they own.”

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