Labor folds on Lawyer X bill, supports $1 million damages cap over ban

Victorians with lingering compensation claims linked to the long-running Lawyer X saga will have their damages capped at $1 million after the Allan government joined forces with a ragtag group of crossbench MPs.

The government had intended to abolish people’s right to pursue civil claims connected to barrister-turned-police informer Nicola Gobbo when it introduced a bill to parliament a few weeks ago.

Police changed their rules around informers after the Nicola Gobbo scandal.Credit: ABC

But on Thursday afternoon, upper house Labor MPs voted in support of amendments – put forward by Libertarian MP David Limbrick – that removed the section of the bill that would have abolished people’s right to sue and replaced it with a damages cap of $1 million.

The amendments and the final bill passed by 21 votes to 18. Limbrick, exiled Liberal MP Moira Deeming, One Nation’s Rikkie-Lee Tyrrell, Shooters, Fishers and Farmers MP Jeff Bourman and the two Legalise Cannabis MPs supported the reworked bill.

The Coalition, Greens and Animal Justice Party opposed it. The reworked bill was sent back to the lower house on Thursday for final approval. Independent MP Adem Somyurek was not present for the vote.

Attorney-General Jaclyn Symes said the government’s original bill, which did not have majority support, would have been better for the taxpayer, but it had ultimately decided to accept Limbrick’s changes after “a lot of thought”.

However, upper house deputy Liberal leader Evan Mulholland accused Limbrick of abandoning libertarian values.

“Why is Mr Limbrick from the Libertarian Party supporting a special status for government at the expense of rights of individual citizens?” he asked during the debate.

Limbrick told The Age: “We just saved taxpayers a fortune whilst allowing people to have their day in court.”

The government’s original bill was delayed last month amid accusations the state was using it as a bargaining tactic to force lawyers to settle legal actions.

At the time, Symes and Premier Jacinta Allan said the government wanted to abolish people’s right to sue to “end this dark chapter”.

Both the Coalition and the Greens were opposed to the original bill, arguing it went too far in limiting civil liberties.

A cap had received some positive feedback from the crossbench during early negotiations with the government, but the Greens ultimately voted against Limbrick’s amendments.

An Allan government spokesperson said the government’s aim was always to shield taxpayers so their money could be better spent elsewhere.

“We haven’t shied away from confronting the difficult truths that arose from the royal commission,” the spokesperson said. “At the same time, we acted to ensure events that led to it will never happen again.”

Shadow attorney-general Michael O’Brien said the bill was a disgrace.

“This isn’t about saving taxpayers’ money,” he said. “This is about avoiding accountability for the state’s role in the worst scandal in Victorian legal history.”

Greens integrity spokesman Dr Tim Read also criticised the passage of the bill.

“This is legislation that meddles with people’s right to litigation and sets a dangerous precedent for police accountability,” he said.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.