Victorian Numbered Acts Victorian Numbered Acts(1) The defendant or the common law insurer is not entitled to conduct the defence of the common law proceeding unless the defendant or common law insurer, within 14 days after the last date for giving notice under section 363 undertakes to the Authority in writing that the defendant or common law insurer, as the case requires, will conduct the defence of the common law proceeding and—
(a) the Authority does not within 7 days after receiving the undertaking give notice in writing to the defendant or common law insurer objecting to the defendant or common law insurer conducting the defence; or
(b) the court in which the common law proceeding is brought at any time orders or directs that the defendant or common law insurer is entitled to conduct the defence of the common law proceeding under this section.
(2) If the court considers that the interest of one of the Authority, defendant or common law insurer in conducting the defence in proceedings is substantially greater than the interest of the other of the Authority, defendant or common law insurer, any order or direction under subsection (1) must be in favour of the person with the greater interest, unless the court considers it just and equitable to provide otherwise.
(3) Subsection (1) does not prevent the defendant or common law insurer conducting the defence of the common law proceeding in accordance with its legal entitlement to do so from the date the defendant or common law insurer received notice of the common law proceeding until the expiration of the period set out in subsection (1)(a) but in so conducting the defence, the defendant and common law insurer must not settle or compromise the common law proceeding without the consent of the Authority.
(4) If a defendant or common law insurer is at any time not entitled to conduct the defence of a common law proceeding in accordance with this section, the Authority or self-insurer may conduct the defence.
(5) Subject to subsection (3), a person entitled to conduct, and which conducts, the defence of a common law proceeding in accordance with this section—
(a) is liable to make full payment of all costs and damages awarded or agreed to be paid to the worker or other person bringing or making (as the case may be) the common law proceeding; and
(b) is authorised by each person under any legal liability in respect of the injury the subject of the proceeding and each common law insurer which is liable to indemnify any such person in respect of or in relation to the proceeding to make admissions, including admissions of liability, and to agree to or compromise or settle the common law proceeding; and
(c) must, on behalf of the defendant, adopt a defence which has the intention of minimizing the damages payable to the worker, regardless of whether this defence advantages or disadvantages the Authority, the defendant or the common law insurer.