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

Two years after the Lawyer X royal commission recommended a ban on compensation payouts for Lawyer X victims, the Andrews government has announced it will introduce a $1 million damages cap.

The government has also backed down on its plan to introduce a bill of rights for Lawyer X victims, after failing to secure the support of the opposition.

The decision to cap damages is a major blow to victims of Lawyer X, who have been fighting for compensation for years.

The government has argued that the cap is necessary to protect taxpayers from "excessive" payouts.

However, victims have argued that the cap is unfair and will prevent them from receiving adequate compensation for the harm they have suffered.

The government has also backed down on its plan to introduce a bill of rights for Lawyer X victims.

The bill of rights would have given victims a number of rights, including the right to be heard in court and the right to access their own legal representation.

However, the government has failed to secure the support of the opposition for the bill.

The decision to cap damages and abandon the bill of rights has been met with anger from victims.

One victim, who spoke to The Age on the condition of anonymity, said the government had "betrayed" them.

"We have been fighting for justice for years, and now the government is just giving up on us," the victim said.

"The damages cap is a disgrace. It will prevent us from getting the compensation we deserve for the harm we have suffered."

The government's decision is also likely to face legal challenges.

Lawyer Greg Barns, who represents a number of Lawyer X victims, said the government's decision was "unlawful".

"The government has a duty of care to victims of crime," Mr Barns said.

"The damages cap is a breach of that duty of care."