Brittany Higgins has lodged a last-minute appeal against a ruling that she defamed her former boss, Linda Reynolds, in an attempt to stave off bankruptcy. The appeal comes after the Western Australia Supreme Court awarded Reynolds $315,000 in damages, along with $26,000 in interest, and ordered Higgins to cover 80 percent of Reynolds’ legal fees, bringing her total financial liability to an estimated $2 million.
Reynolds claimed that a series of social media posts made by Higgins and her partner, David Sharaz, in 2022 and 2023, caused her health issues, damaged her reputation, and hindered her career. The court’s decision has placed significant financial pressure on Higgins, who is now fighting to overturn the ruling.
Background and Financial Strain
In 2022, Higgins was awarded $2.4 million from the Commonwealth as part of an out-of-court settlement regarding the handling of her 2019 rape allegation against former colleague Bruce Lehrmann. Shortly after, she registered an Australian Business Number (ABN) for the Brittany Higgins Protective Trust, which her lawyer stated was established to hold the settlement proceeds.
As Reynolds’ defamation case progressed, she successfully obtained a court order to access details of the trust. However, public records indicate that the trust’s ABN was cancelled months before Reynolds won her suit, suggesting it was no longer active. Higgins has since informed the court that she has only $10,000 remaining.
Legal Maneuvers and Bankruptcy Proceedings
On Wednesday, Higgins’ legal team accepted a bankruptcy notice served by Reynolds’ lawyers, as reported by The Australian. However, the appeal against the defamation ruling temporarily halts any bankruptcy proceedings until the appeal is resolved.
Higgins’ lawyer, Rachael Young SC, argued that the trust was intended to manage the settlement funds and that there were no creditors at the time of its creation. Supreme Court Chief Justice Peter Quinlan did not rule on Higgins’ intentions but acknowledged that setting aside the trust was Reynolds’ only hope of recovering any owed sums.
“How much of the $2.4 million payout remains is unclear. Higgins claimed she received about $1.9 million, but her financial activities since then, including a lavish wedding, international travel, and the purchase of a French home later sold to cover legal costs, have raised questions.”
Ongoing Legal Battles and Implications
Reynolds’ lawyer, Martin Bennet, highlighted the financial toll on the former senator, who is reportedly “mortgaged to the hilt” to cover her own legal expenses, estimated to exceed $1 million. In a judgment released last month, it was revealed that Higgins had offered a $200,000 settlement towards Reynolds’ legal fees, to be funded by her parents. This offer was deemed “unreasonable” by Justice Paul Tottle, as it required both women to issue a “statement of mutual regret” and for Reynolds to donate $10,000 to a women’s charity or refuge.
The legal saga involving Higgins has been ongoing for several years. A criminal case against Lehrmann was abandoned due to juror misconduct, and he subsequently lost a defamation case against Network 10 and presenter Lisa Wilkinson, who initially reported Higgins’ allegations. Meanwhile, Reynolds is pursuing separate legal action against the federal government over the settlement awarded to Higgins, alleging it breached its duty to act in her best interests.
As the legal proceedings continue, the implications for both Higgins and Reynolds remain significant. Higgins’ appeal could potentially overturn the defamation ruling, altering her financial obligations and future prospects. For Reynolds, the outcome of her legal actions could impact her career and financial stability.
The unfolding legal drama underscores the complexities and personal toll of high-profile defamation cases, with both parties navigating the intricate legal landscape in pursuit of justice and financial recovery.
