Attorney-General Martin Pakula has asked the Victorian Law Reform Commission (VLRC) to review the rules covering litigation funders to prevent unfair conduct in civil proceedings, such as class actions.

Litigation funders generally agree to fund part or all of a plaintiff’s costs of a civil court proceeding in exchange for a share of any award to the successful plaintiffs.

The review will look at circumstances where a successful outcome may be unduly eroded by fees, leaving plaintiffs with virtually nothing despite successfully arguing their case.

The review will also consider whether some third parties are unfairly profiting from successful actions, denying Victorians access to justice.

Consideration will also be given to the existing prohibition on law firms charging contingency fees and whether, and in what circumstances, that prohibition should be retained.

The VLRC will provide its report to Government by 30 March 2018.