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4.4 Payment of damages to the Commonwealth
Division 4 of Part 3 of Chapter 10 of the MRCA deals with a situation where a person other than the Commonwealth or a potentially liable member is liable to pay damages to a plaintiff in respect of an injury, disease, death or loss, or damage to, a medical aid (the 'cause of action') that would otherwise be compensable under the MRCA. In these circumstances, the MRCC can require the person to pay the damages to the Commonwealth to allow for the appropriate recovery of the plaintiff's debt under Chapter 10 of the MRCA.
Under section 403 the MRCC can issue a notice requiring the defendant to repay the lesser of the amount of damages and the compensation already paid to the plaintiff (minus the inclusions mentioned in 4.3.2) to the Commonwealth.
This notice only has effect if it is made before all the damages are paid to or for the benefit of the plaintiff. If part of the damages have been paid, then the defendant is liable to pay the amount that has not been paid.
If the defendant fails to pay the requested damages to the Commonwealth, then the MRCC can pursue the payment of the requested amount in a court of competent jurisdiction. This amount then becomes a debt to the Commonwealth.
Once the defendant has paid the amount requested, that person's liability to the plaintiff and the Commonwealth is discharged.