A jury is likely to decide whether the State of Victoria failed to adequately protect murdered gangland boss Carl Williams in jail.
The civil case could also take up to 25 days and be held in late 2015, Victorian Supreme Court Justice John Dixon said when he reviewed its progress.
Lawyers for each party were given until the end of 2014 to compile relevant documents and a period of mediation - which could resolve the case - was scheduled for April next year.
The Williams family, who were not present in the court on Friday, launched the civil case in 2012.
It seeks compensation on the grounds the State of Victoria did not take necessary steps to ensure Carl Williams' safety in prison.
Williams was murdered in 2010 by fellow prisoner Matthew Johnson, who repeatedly bashed him with a steel pipe from an exercise bike.
At the time of his death, Williams was serving three life sentences for murders committed during Melbourne's gangland wars.
Johnson received a life term for the killing.
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