David Sharaz, the husband of former political staffer Brittany Higgins, has been declared bankrupt in the Federal Court in Perth. The decision came two months after former Senator Linda Reynolds served him bankruptcy papers.
On Tuesday, Registrar Camille Goucke ordered Mr Sharaz's estate to be sequestrated under the Bankruptcy Act, with costs of $5,690 to be paid. The court heard Mr Sharaz was personally served the bankruptcy notice at a Melbourne cafe on October 10.
This follows Ms Higgins being declared bankrupt on Friday in a hearing brought by Ms Reynolds. Justice Michael Feutrill ruled her estate must also be sequestrated, and she was ordered to pay costs of $6,330.
In August, both Ms Higgins and Mr Sharaz were found to have defamed the former WA MP in social media posts. Ms Higgins was ordered to pay $315,000 plus $26,000 in interest, while Mr Sharaz, who did not defend the action, was ordered to pay $85,000. They were also jointly liable for Ms Reynolds' legal costs exceeding $1 million.
Ms Reynolds' lawyer, Martin Bennett, said the bankruptcy proceedings were a consequence of Mr Sharaz defaming Ms Reynolds. He noted Mr Sharaz had withdrawn from defending the defamation action, with his barristers stating he would not 'buy a ticket on the Titanic.'
Ms Reynolds is also suing the Commonwealth and law firm HWL Ebsworth over the handling of Ms Higgins' $2.4 million compensation settlement. Mr Bennett indicated further legal proceedings are expected.
