The owners of 24 Irish trawlers have appealed a decision by the European Commission that prevents them from increasing the size of their vessels.
If successful, the legal appeal to the Court of First Instance in Luxembourg could result in an application for compensation worth up to €50 million to either the State or the EU.
The case concerns an application by the owners of the vessels to the commission to increase the tonnage of their trawlers to enhance their safety, hygiene and working conditions.
In April 2003, the commission ruled that the Irish vessels, which are based in Donegal, Cork and Galway, were not allowed to increase their tonnage.
This decision forced the vessel owners to buy additional tonnage from other vessel owners which had excess capacity or who were decommissioning their trawlers.
The action was initiated in June 2003 by Atlantean Ltd, a fishing vessel firm owned by Dublin-based businessman Des Faherty.
The legal representatives of the Irish fishermen argued yesterday that this type of increase in weight of the vessels was allowed under an EU restructuring plan for the fisheries sector agreed in 1997 as it did not increase the fishing capacity of the vessels.
They also argued that the commission used legal principles that were not in force at the time to rule against their application for extra tonnage.
The commission, which regulates the overall tonnage of the Irish fishing fleet, is defending its case. A judgment is expected next year.