Victorian Current Acts

WORKERS COMPENSATION ACT 1958 - SECT 66

    (1)     Subject to section 70 where a judgment or order for damages in favour of a worker is to be entered or made in any court in respect of the injury of the worker in proceedings independent of this Act against a third party for whose acts or defaults the worker's employer is not responsible and payments of compensation have already been made in respect of that injury by the employer, then—

        (a)     (if pursuant to any rules of the court made in that behalf the employer has joined in the proceedings) a judgment or order in favour of the employer may be entered or made in respect of an amount equivalent to the payments of compensation made and the amount of the judgment or order in favour of the worker may be reduced by the corresponding amount accordingly;

S. 66(1)(b) amended by Nos 10191 s. 270(14)(a), 67/1992 s. 64(11)(b).

        (b)     (if the employer has not joined in the proceedings but it is made to appear to the court that the payments of compensation have been made) the amount of the judgment or order shall be reduced by the amount of the payments made, and in any such case the employer shall be entitled to be indemnified for the payments and any person who has been called on to pay an indemnity under the section of this Act relating to sub-contracting shall be entitled to be indemnified by the third party for such proportion of the amount of the compensation paid as is appropriate to the degree to which the injury was attributable to the act default or negligence of the third party and all questions as to the right to and the amount of any such indemnity shall in default of agreement be settled by action or if the parties consent by the County Court—

but where the amount of the judgment or order in favour of the worker is not so reduced, the employer shall be entitled to be indemnified for the payments so made by the third party reduced to the same extent (if any) as the damages in favour of the worker are reduced by virtue of section 26(1) of the Wrongs Act 1958 , and the third party shall, if he has so indemnified the employer, be entitled to retain or (as the case requires) to recover from the worker in any court of competent jurisdiction as a civil debt recoverable summarily an amount equivalent to the amount of payments so made, and where any amount is retained in accordance with the provisions of this paragraph the judgment or order to the extent of that amount, be deemed to have been satisfied.

    (2)     Where under subsection (1) a judgment or order is made in favour of the employer or an indemnity is payable the judgment or order in favour of the employer or the indemnity is to be reduced by an amount equal to any amount recoverable by the employer or a person called upon to pay the indemnity from the Motor Accidents Board under section 8 and the judgment or order in favour of the worker shall be reduced accordingly.

S. 67 inserted by No. 9683 s. 5, amended by Nos 10191 s. 270(14)(a), 67/1992 s. 64(11)(b), 50/1994 s. 120(1).