Hundreds of taxi drivers are to take individual compensation cases to the High Court for loss of value in their licences following liberalisation of the industry.
Compensation and loss of earnings cases are being pursued on an individual rather than union basis. All cases are being handled by McMahon O’Brien Downs law firm. A spokesman for the firm said letters have been sent to the local authorities, which are the licencing authorities.
However, a spokeswoman for the Minister of State at the Department of the Environment, Mr Molloy, said no notification of legal action had been received.
Although a similar union-based claim was defeated earlier this year, sources close to the case say an "imaginative approach" will be taken in the new action.
Mr Vinny Kearns, vice-president of the National Taxi Drivers’ Union said taxi drivers had estimated accumulated losses nationwide of £315 million following changes to the legislation.
Describing compensation for taxi drivers as an "outstanding issue" he said recent political suggestions, including an offer of £20 million from Fine Gael’s Mr Jim Mitchell, did not go far enough.
Mr John Ussher, president of the Irish Taxi Drivers' Union added positive talks on the compensation issue were ongoing with the Taoiseach and unions. "Mr Ahern has indicated that he is willing to look at hardship cases", Mr Ussher said.
He added that while the offer from Fine Gael was welcome, it would translate into only £4,000 per-driver, when the actual loss was closer to £80,000.
Last March, High Court judge Mr Justice Carney rejected a case by the taxi operators' that new regulations should have contained a compensation scheme. He said that the operators were mistaken if they believed there was an automatic right to compensation in all circumstances.
A court date for the new claims is expected within weeks and a senior counsel has been retained by the McMahon O’Brien Downs firm.
