Up to a quarter of the compensation claims for alleged hearing damage in the Defence Forces may be dropped as a result of yesterday's High Court decision in which a claimant received no award.
The case, taken by Private James Brogan (47), is being seen by Government figures as another landmark decision in support of the new criteria introduced by the State for measuring hearing damage.
Under the State's "Green Book" criteria, Private Brogan had "zero per cent" hearing loss. The High Court accepted the criteria and refused him any compensation.
It is understood that of the 11,000 outstanding claims by serving or retired military personnel about 25 per cent come within the same category of "zero per cent" hearing loss. It is felt unlikely that many of these cases will proceed to a court hearing if there is little or no likelihood of a substantial settlement and if there is a question over the plaintiff's legal costs.
The judgment could also lead to even more cases being withdrawn as it is understood that about half the claims are for very marginal hearing loss.
Cases which last year were being settled for at least £30,000 may fail to achieve any compensation under the new criteria.
Yesterday the staff association representing non-commissioned ranks in the Defence Forces criticised the Minister for Defence, Mr Smith, who has led the turnaround in the saga.
The Permanent Defence Forces Other Ranks Representative Association (PDFORRA) criticised the Minister's remarks, in a press release on Tuesday, that huge hearing compensation and legal costs - which are still expected to run to over £200 million - would have to be paid for by economies in the Defence budget.
The PDFORRA general secretary, Mr John Lucey, wrote to the Minister yesterday saying the Government's approach was "heavy-handed".
Mr Lucey asked the Minister to explain where the "economies" would be made. "Does it mean savings from an already inadequate budget? Does it mean a further reduction in strength, cancellation of the purchase of vital equipment and barracks closures?"
He said it was "quite heavy-handed" of the Minister to offer settlement to soldiers claiming compensation "and at the same time threaten jobs and conditions of service through these `economies to be made in the Defence budget towards the overall cost' ".
He added: "I would also put it to you that the whole thrust and tenor of the press release is tailor-made to drive members of the Defence Forces into a position where there will be a grassroots reaction which is unnecessary and unprecedented."