THE ultimately fruitless battle by former Empire Rubber workers to recover their lost funds following the business’ demise could be used as an example to reform Victoria’s litigation system.

The Victorian Law Reform Commission will review the rules covering litigation funds this year, with a report to be released in just over 12 months.

Empire Rubber workers won $4.5 million in 2016 after a 10-year battle to recover lost entitlements from CBL Insurance, but the funds were soaked up in legal fees and litigation costs.

Former workers at the Bendigo site did not see a cent of the money.

National Union of Workers Victorian secretary Gary Maas said “unjust outcomes” were prevailing in the state’s justice system.

“Regional workers had justice denied in their case with CBL Insurance,” he said.

“The system allowed millions of dollars awarded to them to be absorbed in legal costs, and in paying 45 per cent to the litigation funder.

“Justice is not served when successful plaintiffs are told they will never receive any of the money they are owed.”

Empire Rubber employees were given a $9.5 million pay out from a government scheme in 2007 to cover annual and long service leave, and 16 weeks redundancy pay. Legal proceedings were launched in 2011 to claim $4.4 million of the remaining $5.8 million shortfall.

The result from the litigation left some employees owed tens of thousands of dollars.

The VLRC report is due to be released in March next year.