Linda Reynolds’ lawyer says Brittany Higgins claims she’s broke, hasn’t paid ‘a cent’ to defamation case debt

Linda Reynolds is “incredibly disappointed” Brittany Higgins still hasn’t paid one cent from her $2.4 million settlement with the Federal Government towards massive bills from her defamation case loss. The ex-Liberal senator’s lawyer Martin Bennett made the remark after his client’s bid to have Ms Higgins declared bankrupt in the Federal Court was delayed for a week by a technical snag. And he asked where all that money had gone. “Ms Higgins is saying she personally has no money left,” Mr Bennett told reporters outside court on Tuesday. “Where’s the $2.4m?” The settlement was reached over Ms Higgins’ claims Ms Reynolds mishandled her allegation she was raped by colleague Bruce Lehrmann in the former politician’s Parliament House office in Canberra in 2019 after a night out drinking. The assertion, aired by Ms Higgins and her husband David Sharaz in social media posts in 2022 and 2023, was strenuously rejected by Ms Reynolds and at the heart of her bitter Supreme Court defamation case against the couple. Ms Reynolds proved victorious in August after a blockbuster trial last year, which had former prime minister Scott Morrison among two dozen witnesses. She now wants to enforce that judgment after spending “millions” on lawyers and is targeting a protective trust she alleges Ms Higgins set up to ringfence the settlement from creditors. Mr Bennett told media last year that Ms Higgins had gone on a “splurge of spending”, including a trip to the Maldives. And recently, the couple sold their chateau in France for an estimated $700,000. Confirmation of their financial status will emerge as Ms Reynolds pursues bankruptcy declarations for both, after the 21 days they had to pay their hefty damages and court costs debt lapsed. When creditors secure such an order, the debtor’s estate is sequestrated and their financial affairs are managed by an external trustee, who Mr Bennett said would zero in on the trust. Federal Court registrar Camille Goucke is now considering whether she can make a substituted service order for Ms Reynolds’ bankruptcy notice and creditor’s petition to Ms Higgins retrospectively. That’s because it has already been served via her lawyer Carmel Galati, whereas Mr Sharaz accepted service of the documents personally. Mr Bennett told the registrar that Ms Reynolds “didn’t want to put Ms Higgins through” being served personally, noting concerns around her mental health. “The debtor wanted to deal with this on an arm’s length basis,” he said. “We say that the service of the notice effectively was done with the consent of the debtor. “Plainly, she was aware of the notice and its expiration. “She’s aware of the hearing today. Ms Higgins desires to make no submission to the court. “There is no question of prejudice to Ms Higgins - it was done for her benefit.” Ms Goucke adjourned the matter until November 18, noting: “We are into technical bankruptcy jurisdiction”. Mr Bennett told reporters said it was a small delay in a long-running matter. “It’s frustrating, but it’s an appropriate step to take by the registrar,” he said. “These matters set precedents. She (the registrar) needs to worry about the technical efficacy of it.” If the substituted service order can’t be made retrospectively, Mr Bennett said his team would simply have to secure a prospective order and serve the bankruptcy notice on Ms Higgins again. This would just add to Ms Reynolds’ wait for cash after her expensive court battle, he said. “She’s incredibly disappointed that Ms Higgins got $2.4m worth of taxpayer money and has paid not a cent towards the judgment against her,” Mr Bennett said. “It cost her (Ms Reynolds) an enormous amount ... and not a cent has been recovered so far. “But we’ll see.” Ms Higgins, who is now a director of east coast PR company Third Hemisphere, did not appear in court, nor did her lawyer. After her bruising loss, she was ordered pay more than $340,000 in damages. Mr Sharaz was ordered to pay up to $220,000 in damages, comprising $85,000 payable by him alone and $135,000 that the couple are jointly liable for. Ms Higgins also must pay 80 per cent of Ms Reynolds’ court costs. Mr Sharaz’s court costs must be paid on an indemnity basis, which are awarded only in exceptional circumstances and cover all costs and disbursements reasonably incurred. Ms Reynolds’ separate court bid to have Mr Sharaz declared bankrupt will be heard on December 16. “He hasn’t indicated a defence to it,” Mr Bennett said. Mr Lehrmann continues to maintain his innocence after his 2022 rape trial was aborted due to juror misconduct and the charge was then dropped. In a subsequent defamation case against Network Ten and journalist Lisa Wilkinson that he lost in 2024, he was found to have raped Ms Higgins, based on the balance of probabilities, which is the standard of proof in civil cases. He is appealing that finding. Ms Reynolds’ separate Federal Court action against the Commonwealth and the legal firm it engaged to handle the settlement, HWL Ebsworth, is scheduled to have its first case management conference in Perth on Wednesday. Ms Reynolds argues she was excluded from the process, even though Ms Higgins’ allegations about her “were entirely defensible”. “That settlement validated the sustained defamation and fuelled further defamation which I have been forced to defend and prosecute, at great personal and financial cost,” Ms Reynolds said in April. 1800 RESPECT Sexual Assault Counselling Australia 1800 211 028