In 2020, the Parliament of Victoria passed 33ZDA of the Supreme Court Act 1986 (Vic), empowering the Supreme Court of Victoria to make ‘group costs orders’ (GCOs). These orders allow law firms, in limited circumstances, to play the role of litigation funder and lawyer, by acting for and indemnifying the representative plaintiff, and also receiving a fee contingent on, and proportional to, the final damages award or settlement. GCOs are a statutory exception to an otherwise blanket prohibition on lawyers entering into agreements which charge contingency fees.

This paper seeks to assess the operation of Victoria’s GCO regime, and determine its appropriateness for the rest of the Commonwealth.