166Relief from liability

#### 166 Relief from liability (1) If: (a) any of the following proceedings are before a court: (i) proceedings seeking an order against a person under subsection 46(3) in respect of a loss; (ii) proceedings seeking an order against a person under subsection 76(1) in respect of compensation; (iii) proceedings seeking an order against a person for recovery of a loss under section 89; (iv) proceedings seeking an order under Part 8 imposing a liability on a person in respect of a contravention of an enforceable obligation; and (b) it appears to the court that the person has acted honestly, and having regard to all the circumstances of the case, ought fairly to be excused from liability for the loss or compensation, or from being liable under Part 8 in respect of the contravention; the court may relieve the person, either wholly or partly, from liability for the loss or compensation, or from being liable under Part 8. (2) A person who thinks that proceedings of a kind referred to in paragraph (1)(a) will or may be begun against the person may apply to the Federal Court for relief. (3) On an application under subsection (2), the Federal Court may grant relief under subsection (1) as if the proceedings had been begun in the Court. (4) For the purposes of subsection (1) as applying for the purposes of a case tried by a judge with a jury: (a) a reference in that subsection to the court is a reference to the judge; and (b) the relief that may be granted includes withdrawing the case in whole or in part from the jury and directing judgment to be entered for the defendant on such terms as to costs as the judge thinks appropriate.