Wirral Council will be in the Court of Appeal next week fighting a case which could set a legal precedent and lead to the authority facing a large claim for unpaid housing benefit.

The action is from a local firm, Salisbury Independent Living, which provides residential accommodation for people with learning disabilities.

The company has been involved in a drawn out legal battle with the council over unpaid rent claims from about 70 people in SIL accommodation.

The authority decided it would not pay the claims in full as it believed many of the service charges included did not qualify for the benefit.

Several of the residents appealed, with SIL’s assistance, against this decision.

But during the eight-year course of the dispute, of those who did so eight have moved away and were not contactable, and another two have died.

The matter came before judges on the Upper Tribunal - which has equivalent status to that of the High Court – which set a legal precedent by deciding that SIL had a right of appeal.

This meant that Salisbury could itself challenge the council’s decisions in respect of the dead or missing claimants – previous to this ruling a challenge would be accepted only if it came for the residents themselves.

However in a further twist, the benefits authorities were then granted permission to appeal against this ruling.

Legal department chiefs from councils up and down the country will be watching next week's outcome closely.

If the SIL challenge is successful, it could set a precedent and open the floodgates for similar claims made by other companies against their local authority.

The case is due to be heard by the Court of Appeal in London next Thursday, January 25.