What started as a simple request to the Victorian ombudsman from parliament has made its way to the Supreme Court amid accusations of election campaign fraud and the misuse of power.
Victoria's Supreme Court has been asked to rule on whether the ombudsman can investigate Labor's use of electoral staff to run its state election campaign.
Parliamentary rules for employing electorate officers say they can't be used for political campaigning.
An internal report found Labor's use of electorate office funds to pay 26 staff for two days a week of election campaigning at the 2014 state election would not "pass the pub test" among voters.
In November, the upper house voted to ask ombudsman Deborah Glass to investigate whether Labor had breached the rules.
But Special Minister of State Gavin Jennings wrote to Ms Glass to say her office did not have the power to conduct the investigation.
Ms Glass thought she did.
She filed an application with the Supreme Court on February 1 seeking a declaration on whether it is within her jurisdiction to settle the "genuine controversy" about her office's powers.
The Victorian Liberal Party and Greens leader Greg Barber are considering whether to join the ombudsman's court case.
Shadow attorney-general John Pesutto - a former lead counsel to former Liberal premier Denis Napthine - says the opposition is waiting to see what happens next.
But the coalition is following the case because it is concerned the government has misused its power by telling Ms Glass she cannot investigate the Labor Party.
General counsel for Premier Daniel Andrews said the government, which denies any wrongdoing, would not be joining the ombudsman's court case.
"There is no intention for Labor Party MPs to join the application," Steve Palmer told the court.
The case returns to court on March 8.
