FORMER shipyard workers from the region have won an important victory following a landmark court case.

Mr Justice Holland, sitting at the High Court in Newcastle, ruled that people who develop so-called "pleural plaques" on their lungs, caused by asbestos fibres, should continue to receive compensation.

The decision could affect thousands of former shipyard workers and other industrial workers who inhaled potentially lethal asbestos fibres during their working life.

It also means that claimants can return to court and seek higher payouts should their condition deteriorate.

The ruling follows a test case involving ten claimants - including several former shipyard workers from the North-East - brought by the insurers and the Department of Trade and Industry.

Despite compensation payments being made to claimants for about 20 years, the insurers had argued that the condition did not lead to other forms of asbestos-related disease.

However, solicitors representing the claimants successfully argued that former employees should continue to be compensated because of the psychological impact of knowing that they are more likely to develop more serious conditions such as lung cancer and mesothelioma.

Mr Justice Holland also decided that payouts for pleural plaques were too high and should be reduced by half.

At present, people claiming one-off compensation payments for pleural plaques receive between £12,000 and £15,000 and £6,000 to £7,000 for provisional payments pending possible future action.

Ian McFall, the Newcastle-based head of asbestos litigation for Thompsons Solicitors, the law firm that represented union members in the case, said: "This judgement is a victory for our clients and everyone else who has a similar claim.

"The High Court has reaffirmed the right to compensation for pleural plaques.

"It has held that our clients have suffered injury and that the negligent employers and their insurers must pay damages. This is good law."

Nationally, the number of pleural plaques expected to be diagnosed each year is between 3,000 and 15,000.

It has been estimated that one in ten deaths from asbestos-related illnesses are from Teesside.

Roger Maddocks, of Newcastle law firm Irwin Mitchell, said while he was pleased the court had acknowledged "the real anxiety suffered by asbestos victims", it was disappointing the court had reduced the overall amounts payable.

"The insurance industry needs to face up to its responsibilities and accept that these claimants deserve compensation," he said.

The insurers and British Shipbuilders have been granted permission to appeal.