A teacher who had a major psychological breakdown after dealing with "feral" students at a Melbourne school has been awarded almost $770,000 in damages.

Peter Doulis took legal action against the Victorian Government claiming he suffered a major breakdown after being allocated some of Werribee College's most challenging students.

The Victorian Supreme Court was told Mr Doulis was threatened while teaching at the school between 1998 and 2004.

The teacher described how "feral" students would be "virtually crawling up the wall" before his classes and in one instance a student, armed with a makeshift flame thrower, singed another student's jumper.

The court found the school, and therefore the state, had breached its duty to Mr Doulis by not removing him from the challenging classes, known as low and foundation classes.

"I find that that breach of duty was a cause of the chronic severe major depressive condition that he now has," the judge ruled.

"I also consider that, had Mr Doulis's workload of low classes and foundation classes been reduced, and if he had been supported in his teaching duties, then it is probable that his psychiatric condition would not have deteriorated."

Mr Doulis's lawyer, Michael Magazanik, said the decision was a huge relief for his client.

"Werribee Secondary College threw Peter into the deep end and left him to sink," he said.

"Peter's had to wear the appalling cost of that for 10 years now.

"Today's decision means the State Government picks up the tab for Werribee Secondary College's disgraceful behaviour."

Mr Magazanik said the behavioural problems were so bad at the time that the school was suspending up to one-in-six students.

Meredith Peace, the Victorian president of the Australian Education Union, said it could happen again.

"If our governments aren't prepared to support our schools in the important work that they do in educating our young people, then we do risk having situations like this re-occur," she said.

A separate hearing to determine compensation for future losses will be held later this month.

Case never about the money, teacher says

Mr Doulis said he was so traumatised by teaching at the school he was left exhausted and shaking after every class.

He did not want to speak to the media, but in a statement said it was never about the money.

"I thank the judge for finding in my favour today," he said.

"The last 10 years have taken an enormous toll on me and my family."

Mr Doulis said he once loved being a teacher.

"Unfortunately, I was forced out of the education system after being put in a really unfair position that caused me a great deal of stress, anxiety and depression," he said.

"My focus now is going to be on my family and recovering my old self."

Werribee Secondary College said the school's learning model allocates students based on their different academic levels.

"Many parents choose to send their children to our school because of this model and the results it delivers," the school said.

But the school acknowledged changes had been made since Mr Doulis taught there.

"All of our teachers are given classes across levels and we do not disproportionately allocate any teachers to any one level," the statement said.

"We no longer allow teachers to request to teach at only one level."