57Comcare’s rights and obligations in respect of certain action for non‑economic loss

57  Comcare’s rights and obligations in respect of certain action for non‑economic loss

 (1) This section applies in relation to action for non‑economic loss taken by a covered person against the Commonwealth or another covered person (the party claimed against).

 (2) Comcare may, at any time during the course of the action:

 (a) take over the conduct of the action on behalf of the party claimed against; and

 (b) if the action is before a court and Comcare thinks it appropriate to do so—apply to the court to join any other person as a party to the action.

 (3) If Comcare takes over the conduct of the action, the Commonwealth is liable to pay all costs of or incidental to the prosecution of the action that would otherwise be payable by the party claimed against, other than costs unreasonably incurred by that party.

 (4) If Comcare takes over the conduct of the action, Comcare may:

 (a) take whatever steps are appropriate to bring the proceedings to a conclusion; and

 (b) if the action is before a court—settle the proceeding, either with or without obtaining judgment; and

 (c) if judgment is obtained in favour of the party claimed against—take such steps as are necessary to enforce the judgment.

 (5) If Comcare takes over the conduct of the action, the party claimed against must comply with any reasonable requirement of Comcare for the purpose of the action including signing of any document relevant to the conduct or settlement of the action.

 (6) If the party claimed against fails to sign a document in accordance with a requirement under subsection (5):

 (a) if the action is not before a court or tribunal at the time of the failure—the Federal Court of Australia, on the application of Comcare, may direct that the document be signed on the party’s behalf by a person appointed by Comcare; and

 (b) otherwise—the court or tribunal in which proceedings relating to the action are being heard, on the application of Comcare, may so direct.

 (7) If Comcare proposes to make an application under subsection (6):

 (a) Comcare must notify the party concerned of the fact that it is proposing to make the application; and

 (b) the party concerned has a right of representation in the hearing of the application.

 (8) If, in the action:

 (a) damages are awarded against the party claimed against; or

 (b) a settlement is agreed on that involves the payment of an amount by the party claimed against;

then, whether or not the conduct of the action was taken over by Comcare, Comcare must, on behalf of that party, pay any damages and costs awarded against that party in that action or any amount agreed to be paid by that party under the terms of settlement of that proceeding.