Former criminal barrister Nicola Gobbo passed on information about her clients to police at the height of Melbourne's underworld war two decades ago, often referred to as the 'Lawyer X' saga.
It sparked a royal commission and rush of criminal appeals from many of her high-profile former clients including Tony Mokbel and Faruk Orman, who each had convictions quashed.
Faruk Orman has signalled he plans to take legal action. (David Crosling/AAP PHOTOS)
The State Civil Liability (Police Informants) Bill 2024 would halt any civil suits from anyone courts find to be wrongfully imprisoned over the scheme and Ms Gobbo herself, who is suing for compensation over claims it damaged her health and career.
The legislation, unveiled by the Victorian government on Tuesday, has faced strong resistance from across the political spectrum, but was rushed through the Labor-dominated lower house.
Both the Greens and opposition say they will oppose it in the upper house, citing concerns over accountability and the belief Victorians should have the right to seek recourse through courts.
"It's a fundamental legal right," Greens integrity spokesman Tim Reed told reporters at state parliament on Thursday.
"It's really important given police aren't facing charges coming out of the royal commission that there remains a mechanism for police accountability."
The government's upper house deputy leader Lizzie Blandthorn on Wednesday night moved a motion to adjourn debate on the bill for a week.
It was defeated by 19 votes to 17.
David Limbrick says it's implausible for the government to think it can rush through the bill. (Joel Carrett/AAP PHOTOS)
Libertarian MP David Limbrick said the government had brought forward the "urgent" bill without the support of the upper house crossbench.
"The idea that it was going to pass this week is just not plausible," he said.
He suggested the move to delay the bill showed the government's true objective for the legislation is to encourage claimants to settle rather than saving taxpayers' money.
Opposition Leader John Pesutto also suspected the bill was designed to stop matters being aired in future trials, but conceded he couldn't prove it.
"Their behaviour over the last few days just doesn't add that," he said.
Premier Jacinta Allan said every bill the government put before parliament was done with careful thought and the intention of passing.
"This bill is reflective of a very dark chapter in the history of this state around how Victoria Police engaged police informants," she said.
"This happened 20 years ago and it is time we brought that this chapter was brought to a close."
Orman previously signalled he will take legal action while Zlate Cvetanovski, who was represented by Ms Gobbo and had a drug trafficking conviction overturned, has filed a damages claim.
The bill would also stop any claims related to lawyer Joseph Acquaro.
He was never an official informant but after being killed outside a gelato shop in 2016, was revealed to have passed on client information to law enforcement.
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