A MARKET compensation case was called off at Burnley county court today after an eleventh-hour cash settlement between a cafe and council landlords.

Burnley town hall has agreed to pay several thousand pounds to Granada Cafe owners Stephen and Patricia Wignall for loss of trade caused by major improvement work in the market square five years ago.

But the deal has dashed hopes that a once-and-for-all settlement covering all traders -- and costing the council more than £250,000 -- could be reached.

It will now be for individual tenants to claim against the landlord and prove their losses.

Tenants' chairman Michael Hartley said: "We had hoped for a global settlement , but we believe the council offer is more than what the court would have ordered and we would have had to meet our costs for the hearing."

Mr Hartley said settlement of the test case was also likely to lead to an end to the traders' policy of withholding market service charges to their landlord during the dispute -- a move which has led to more than £400,000 being withheld.

Philip Walsh, Burnley council public protection chairman in charge of markets, said he was satisfied with the deal which had been struck with the Granada Cafe owners.

The judge, who awarded the stallholders' legal costs of £30,000 to £40,000 against the council, said he would set the level of compensation this week unless settlement could be reached between the parties.