Technicality delays Brittany Higgins bankruptcy proceeding again
A Federal Court technicality had delayed bankruptcy proceedings against Brittany Higgins once again.
A Federal Court technicality has delayed bankruptcy proceedings against Brittany Higgins once again.
The fresh delay has come about as Ms Higgins’ lawyer was served a creditor’s petition by email rather than in person.
Now Justice Michael Feutrill will consider whether this is possible, and set a precedent in the Federal Court.
Ms Higgins has been sued by former senator Linda Reynolds who, a court found, she defamed in several social media posts that were critical of how she handled her junior staffer’s rape allegation.
The former WA senator filed bankruptcy proceedings against Ms Higgins after the former political staffer abandoned an appeal to fight her defamation loss.
Speaking outside of court, Ms Reynolds’ lawyer Martin Bennett said: “We adopted a method of service of the original creditor’s position that respected Ms Higgins’ mental fragility.”
Mr Bennett said they would likely have a sense of Ms Higgins’ assets and what is held in the Brittany Higgins Protective Trust within the first few months of a trustee being assigned to the bankruptcy.
“A person who’s made bankrupt has an obligation to assist a trustee in a bankruptcy, there are very severe consequences if they don’t.”
Ms Higgins was ordered to pay her former boss $341,000 and 80 per cent of her legal costs after losing a defamation case in the WA Supreme Court.
Ms Reynolds sued Ms Higgins and her husband, David Sharaz, over a series of social media posts the pair published in 2022 and 2023 that claimed the former senator mishandled her junior staffer’s rape allegation.
Ms Higgins alleged she was raped in the senator’s office at Parliament House by her then colleague Bruce Lehrmann, who continues to deny the allegation.
Ms Reynolds filed a creditor’s petition against Ms Higgins on Monday, asking a Federal Court judge to make her former employee bankrupt and for a bankruptcy trustee to control her financial affairs.
The Australian reported the proceeding would help Ms Reynolds find out if Ms Higgins had any money left over from a multimillion-dollar compensation payment she received from the Commonwealth over her rape allegation.
Court documents revealed Ms Higgins offered Ms Reynolds a settlement payment of $200,000 four days before the defamation trial started, but it was rejected.
Justice Paul Tottle found the settlement offer made to Ms Reynolds was unreasonable and $200,000 would only have been a contribution to costs and did not vindicate Ms Reynolds of her reputation.
Justice Tottle also found that Ms Higgins made several mistruths that Ms Reynolds was involved in a cover-up when she went public about her allegations.
Ms Reynolds argued a mutual statement drafted by Ms Higgins did not admit liability, did not include an apology, and said no more than the parties agreed to disagree.
Originally published as Technicality delays Brittany Higgins bankruptcy proceeding again
