403Payment of damages by persons to the Commonwealth

403  Payment of damages by persons to the Commonwealth  (1) This section applies if a person other than the Commonwealth or a potentially liable member (the defendant):  (a) appears to the Commission to be liable to pay damages:  (i) to a person (the plaintiff) in respect of a service injury or disease of the plaintiff; or  (ii) to a person (the plaintiff) in respect of the loss of, or damage to, a medical aid of the plaintiff; or  (iii) to a dependant (the plaintiff) of a person in respect of a service death of the person;   in respect of which compensation has been paid under this Act; or  (b) has agreed to pay damages of that kind to the plaintiff; or  (c) has had damages of that kind awarded against him or her in proceedings arising out of a claim made by or on behalf of the plaintiff.  (2) The Commission may give the defendant a written notice requiring him or her to pay to the Commonwealth the damages (if any) that he or she agrees to pay or that are awarded against him or her.  (3) If the defendant is given a notice, the defendant must pay the Commonwealth the lesser of:  (a) the amount of the damages; and  (b) the total amount of compensation paid to the plaintiff under this Act in respect of the injury, disease, death, loss or damage (except MRCA supplement under section 221 or 245 and compensation for dependants under section 242, 253 or 255).  (4) If the defendant is given a notice after paying to or for the benefit of the plaintiff all of the damages to which the notice relates, the notice has no effect.  (5) If the defendant is given a notice after paying to or for the benefit of the plaintiff part of the damages to which the notice relates, the reference in subsection (3) to the amount of the damages has effect as a reference to so much of that amount as has not been paid.  (6) If the defendant fails to pay an amount to the Commonwealth in accordance with the notice, the Commission may recover that amount from the defendant in a court of competent jurisdiction as a debt due to the Commonwealth.  (7) The payment of an amount to the Commonwealth by the defendant in accordance with the notice discharges, to the extent of the amount paid:  (a) the liability of the defendant to the plaintiff; and  (b) the liability (if any) of the plaintiff to the Commonwealth under Division 3.