A former senator's act of kindness towards Brittany Higgins might have backfired, with a bankruptcy case aimed at discovering where the former staffer's $2.4 million compensation payout went delayed further.
A former senator's act of kindness towards Brittany Higgins might have backfired, with a bankruptcy case aimed at discovering where the former staffer's $2.4 million compensation payout went delayed further.
Ex-Liberal MP Linda Reynolds successfully sued Higgins over a series of social media posts the former defence minister believed damaged her reputation.
Reynolds was awarded damages of $315,000 plus $26,109 interest after Western Australia's Supreme Court in August found some of the posts were defamatory.
READ MORE: Principal threatens to expel students after boy allegedly assaulted
Higgins was also ordered to pay 80 per cent of her former boss's legal costs, which are estimated to be more than $1 million.
Reynolds launched bankruptcy proceedings in October against Higgins to recoup the costs awarded in her defamation win.
Federal Court judge Michael Feutrill today reserved his decision over Reynolds' creditors petition to formally bankrupt Higgins after the ex-senator unusually served the documents to her lawyer and not her personally.
"All we were trying to do was facilitate service in a manner respecting mental health and fragility and that's proving more difficult than just blindly rushing in oblivious to the effect," Reynolds' lawyer, Martin Bennett, told reporters outside the court in Perth.
"Because this is an unusual, novel point, and there's no precedent for it, His Honour is correctly going to write reasons for his decision in the next few days."
Bennett said Higgins had instructed her lawyer to accept the documents, was not fighting the proceedings and he was confident the court would accept the application.
"If somebody takes the trouble to instruct a solicitor to accept service on their behalf, they're not contesting service," Bennett said.
"What they're doing is just distancing themselves from it, avoiding a knock on the door at night in front of neighbours and the like."
READ MORE: Chalmers calls time on $300 energy bill relief for Aussie households
If Reynolds' application is accepted, her legal team could find out how much money Higgins has within months.
"Get behind the trust. Where's the $2.4 million? How much has been spent, how much has been dealt with, what's left?" Bennett said as he described the next steps in the proceedings.
Higgins apologised to Reynolds after the former defence minister emerged victorious from the duo's high-profile five-week defamation trial.
Justice Paul Tottle found Higgins' social media posts carried an array of imputations.
They included that Reynolds engaged in a campaign of harassment against Higgins, mishandled her rape allegation and engaged in questionable conduct during Bruce Lehrmann's aborted criminal trial for rape.
The 360-page judgment made factual findings about the events involving Reynolds and Higgins, including her alleged 2019 rape and the events in the years after it.
Higgins made 26 false or misleading statements in media interviews after her alleged sexual assault, the judgment said.
READ MORE: The system missed five chances to stop him
She alleges former co-worker Lehrmann raped her in the senator's ministerial suite.
A Federal Court judge overseeing a defamation case launched by Lehrmann against Network Ten found Higgins was, on the balance of probabilities, raped by her former co-worker in the office.
Lehrmann has lost an appeal against that finding but has flagged taking the case to the High Court.
He denies the rape allegation and his criminal trial was derailed by juror misconduct.
Higgins' husband David Sharaz was also served with a bankruptcy notice by Reynolds and is expected to declare bankruptcy.
He was also found to have defamed the former politician and was ordered to pay $85,000 in damages plus interest and costs.
Readers seeking support can contact Lifeline on 13 11 14 or beyond blue on 1300 22 4636.
Support is available from the National Sexual Assault, Domestic and Family Violence Counselling Service at 1800RESPECT (1800 737 732).
DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.
'Never forgiven': Ex-nurse convicted of murdering Toyah Cordingley
Train passengers forced to climb stairs as lifts break for 60th time
Perth school locked down after reported stabbing
Fears for motorcyclist who fled scene of fiery crash
Aussie households to be $300 worse off
The system missed five chances to stop him
'Housemate from hell' evicted - then nightmare begins
Teens arrested after worker and elderly customer injured in bottle shop robbery
Warning to dog owners after poisoned sausages left at Sydney park
Warning of 'above average' bushfire season
Trio successfully overturn bucks party rape convictions
Taxpayers to tip in $45m to take Tim Tams global
How an Olympic snowboarder became one of the FBI's most wanted fugitives
Stunning images show shark feeding frenzy off NSW beach
The Aussie city with the best Uber rating revealed
Man arrested over pepper spray attack at Heathrow Airport, UK
