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The Lavosi Gang Wars were a series of conflicts between three gangs; the Broken Cloaks, the Shattered Brotherhood, and the Caravan of Wonders; and the government of Lavos, led by Victor Damius. The Wars began with the Shattered Brotherhood and the Broken Cloaks openly engaging in combat on the streets of Lavos proper. The fighting became so chaotic that the Lavosi government had to step in and intervene, fearing damage to the city and death of innocent citizens. What resulted was a four-way war that was incredibly bloody for all sides, and the source for one of Damius's few critical mistakes; he underestimated the gangs' power, a burden he would have to bear for the rest of his life.

Fighting raged on everywhere in the country, and outside of it as well; several encounters between the Broken Cloaks and the Shattered Brotherhood saw fighting taking place as north as the Village Territory of Efugio and as west as Meyron. While the Efugians had no national representation, Meyron had plenty, and called for the war to end, no matter the cost. This resulted in a war not only against the gangs, but against the politics of the region. Any other diplomat would have failed handling it; Victor Damius, in this regard, is considered the greatest, one of the many reasons being that he saved his country from financial and physical ruin during this period.

Although the Gang Wars officially ended in 242 AC, when the Broken Cloaks and the Shattered Brotherhood were driven out of the city of Lavos, the fighting continued well after the fact for some of the gangs, both against each other and against the government. Two of the leaders of the Broken Cloaks, Jorry 'Lavos' and 'Ser' Garryt, attempted to assassinate Victor Damius himself in his private villa on July 29th, 244 AC, dying in the process. The two men remained unbroken and reputedly died with smiles on their faces, which means that Lavos and Victor Damius never truly won the Lavosi Gang Wars.

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