NOISY knitwear factories could leave clothing manufacturers with a big compensation bill after a Court of Appeal ruling.

The decision could lead to a flood of claims for pay-outs from firms with factories in Notts and Derbyshire.

Up to 700 workers employed in the knitting industry are seeking damages for what they say is work-induced deafness.

And in a potentially crucial test case ruling, top judges have awarded £3,334 in damages to one of them, Stephanie Baker.

Lady Justice Smith, sitting at the Appeal Court with Lord Justice Jacob and Lord Justice Sedley, said that an "average sized employer" should have been aware of the dangers posed by noise between 85 decibels and 90 decibels by 1976-7 and overturned a 2007 dismissal of Mrs Baker's claim.

She added that employers should have taken action to protect its employees by January 1, 1978.

That date will also apply to other employers involved in the appeal, Meridian Limited, based in Nottingham, and Pretty Polly Ltd, which is based in Sutton-in-Ashfield.

Other companies will also be affected.

Today's ruling means that any knitting factory worker who can show that their deafness was induced by excessive workplace may have a valid damages claim.