A LANDLADY has lost a landmark legal battle in which she claimed up to £400,000 in compensation after she said passive smoking in her bar made her ill.

Michelle Muir, 44, said that working at the New Derby pub, in Roker Bath Road, Sunderland, had exposed her to so much smoke that her throat was damaged.

She said depression and anxiety brought on by the illness had left her unable to work, and said her loss of earnings was up to £396,413.

But the case was rejected at Newcastle Crown Court on Tuesday after doctors said damage to her throat was more likely to have been caused by having to raise her voice in a busy pub.

If Miss Muir, who lived in the pub, had won her case, it would have opened the floodgates for thousands of similar cases.

Solicitor advocate Fred Banning, representing Miss Muir, told the court poor ventilation in the smoky pub caused damage to her vocal chords. After she started to suffer sore throats, in early 2001, she underwent a series of operations.

It was said she had to stop work in May 2002, and was dismissed by the New Derby's owners, the Laurel Pub company Limited, in March 2003.

The company, and Miss Muir's previous employer, Whitbread, admitted there had been a breach of ventilation rules, but argued the smoky environment would not cause illness.

They said medical evidence showed the health problems were caused by friction damage, possibly as a result of talking loudly.

David Platt, representing the pub companies, said evidence from surgeon Hugh Marshall showed that 90 per cent of similar problems were found in non-smokers.

Rejecting the claim, Judge Christopher Walton said the problems did not arise from inhaling cigarette smoke.

Miss Muir, who declined to comment on the outcome, was ordered to pay court costs.