Linda Reynolds’ eye-watering legal bills could end in bankruptcy for David Sharaz
Newlyweds Brittany Higgins and David Sharaz are set to jet back to France but their lifestyle could face new restrictions.
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David Sharaz and Brittany Higgins could face new restrictions on their ability to leave the country if they are forced into bankruptcy as a result of their legal fight with former Liberal minister Linda Reynolds.
The happy couple tied the knot over the weekend with Ms Higgins wearing a fairytale couture gown by Australian designer Paolo Sebastian.
Friends and family have been sharing intimate new photographs and videos of the glamorous wedding on social media.
But legal sources have warned the honeymoon could soon be over if Senator Reynolds’ legal action is successful next month.
Senator Reynolds is suing Ms Higgins and Mr Sharaz over social media posts they made that she claims damaged her reputation.
Legal sources claim that the cost of running the two defamation cases and a trial is set to cost Ms Higgins’ former boss an estimated $1 million plus.
Legal fight will target $2.4 million payout
If Senator Reynolds is successful, she will attempt to recover some of those costs and will also be seeking aggravated damages.
That could wipe out a substantial chunk of Ms Higgins’ personal finances, despite receiving $2.4 million in a confidential settlement from the Albanese Government.
Ms Higgins told the Federal Court that she received $1.9 million after taxes and legal fees and has since bought a house for $700,000 in France and paid for the wedding that is estimated to have cost over $100,000.
Senator Reynolds’ lawyers are trying to gain more information about the trust to determine if it is accessible to target as creditors if she is successful.
The former Liberal frontbencher claims social media posts by Ms Higgins and Mr Sharaz suggested that she had engaged in a cover-up over Ms Higgins’ allegations that she had been raped in the senator’s office by a colleague, Bruce Lehrmann, an allegation he has always denied.
Bankruptcy fears
Mr and Mrs Sharaz, as the bride described the couple in an Instagram post, could face new restrictions on international travel if Senator Reynolds’ case is successful and the WA Supreme court action forces one or both of them into bankruptcy.
The couple are planning to return to France this week where they relocated in December 2023, before flying back to Australia next month for the WA Supreme Court trial.
They previously jetted to Australia in March for a failed mediation with Senator Reynolds, before Ms Higgins and Mr Sharaz returned back to France later that month. They then returned to Australia in May, ahead of their June 1 wedding.
They are set to return to France later this week.
Mr Sharaz has already revealed that he plans to run up the white flag because he cannot fund a trial and his lawyer Jason MacLaurin said Mr Sharaz would not contest liability but might want to be heard on damages.
David Sharaz will not contest the case
Earlier this year, Mr Sharaz issued a statement on social media that he would no longer contest the case, as he could not afford an ongoing legal battle with the senator.
His lawyer stated that he did not want to “buy a ticket on the Titanic”.
Federal Court Justice Michael Lee has previously ruled that was convinced to a civil standard – which is different to a criminal standard – that on the balance of probabilities Ms Higgins was raped.
Justice Lee also found a political cover-up involving Senator Reynolds and others was not true, which Senator Reynolds, who was not called to give evidence during the defamation trial, said was vindication of her.
Could David Sharaz travel overseas if he were forced into bankruptcy?
During bankruptcy you must request permission from your bankruptcy trustee to leave Australia.
This would not ban Mr Sharaz from leaving Australia but it would put restrictions in place he would need to adhere to.
The Bankruptcy Advisory Centre said that it commonly receives queries about international travel and the rules of engagement when the insolvent party requires international travel.
“Often, clients will ask if they will be permitted to Travel Overseas during their Bankruptcy process. The answer is simple: yes, you may. However, there are some restrictions when you travel overseas,’’ the advice states.
“You need to write the travel request to your appointed bankruptcy trustee, confirming any agreement about travel discussed with your trustee.
“Bankruptcy is legally mandated, and all parties must follow due process throughout the endeavour. This will also include not creating enmity.
“Just remember that the trustee appointed is there to work according to what the law states and the expected protocol,’’ the advice states.
“Your trustee will always try to be fair, but they can decide what can stop you from travelling overseas. The trustee is, therefore, an objective outside party appointed to perform one function: to follow the law by processing a Bankruptcy process in the most effective way possible, including the aspect relating to Travel Overseas if Bankrupt.
“If the trustee wishes for you to remain in the country for whatever reason, you must accommodate this as much as possible. Failure to do so could question your credibility as an insolvent party protected by the Bankruptcy Act.”
Mr and Mrs Sharaz celebrated on Saturday with a small group of close friends and family only in Queensland.
Former Sex Discrimination Commissioner Kate Jenkins, who spearheaded landmark reforms to ensure safe and respectful work environments in Commonwealth Parliamentary workplaces in the wake of Brittany Higgins’ campaign for reform was invited.
Television producer Judi McCrossin, who has optioned the rights to Ms Higgins’ unpublished memoir with an eye to making a telemovie, was also in attendance with her husband Stephen Hall, a regular cast member on Shaun Micallef’s Mad As Hell, who plays political spokesman Darius Horsham.
“Join us in making unforgettable memories,” the invitation said. “Come for the love, stay for the party.”
Originally published as Linda Reynolds’ eye-watering legal bills could end in bankruptcy for David Sharaz
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