The test claim by Bernie Crehan, 57, who lost his life savings over what he says was anti-competitive price-fixing, is being watched by about 600 other publicans who could have similar claims totalling £100 million if he succeeds.

The House of Lords case will also determine whether individuals can bring claims for losses suffered as a result of a breach of European competition rules, opening the way to a whole new area of litigation.

Mr Crehan had to give up his two pubs, the Phoenix and the Cock Inn, in Staines, Surrey, in 1993 over what he argued were unfair pricing arrangements that made his beer uncompetitive. His leases from Inntrepreneur, the landlord, contained a “beer tie” requiring him to buy his beer from Courage at full list price. But his main competitor, the Angel, a quarter of a mile away, was a free house and could buy its beer, also brewed by Courage, at discounts of £80 a barrel.

Mr Crehan, who is now unemployed and lives in Eastbourne, East Sussex, with his wife, said: “The big problem was that the free house could give discounts of 50 to 60 per cent on a pint. How could I compete with that?” Mr Crehan’s claim was initially unsuccessful in the English courts. But in 2001 the European Court of Justice found that he and other tenants had a right to claim damages if they could prove the underlying facts of their cases.

The case came on for trial in 2003, when Mr Justice Park decided — contrary to the view of the European Commission — that the Inntrepreneur beer tie did not infringe European competition law.

In 2004 the Court of Appeal unanimously ruled that European competition law had been breached and that greater deference should have been paid to the decisions of the Commission. The court awarded Mr Crehan damages of £270,000.

Explore Law

• Columnists

• Law Panel

• Law Reports

• Student Law

Times Recommends

• BGC 'set aside £40m to lure Tullett brokers'
• Legal aid review to ensure value
• Fears as 21 magistrates' courts face closure