BOURNEMOUTH-based Excelsior Coaches has won a legal battle against BT for £100,000 compensation and costs after telephone lines were left out of order for in excess of ten days.

Over three periods dating back as far as 2005, Excelsior was unable to receive any inbound calls on all its six lines - and customers ringing in were getting a number unobtainable' message.

Corporate solicitors Laceys, also of Bournemouth, handled the legal action for compensation for loss of profits. Initially Excelsior approached BT through its complaints department - but after six months was offered just £412 compensation.

Excelsior's managing director Kathy Tilbury said: "That wasn't acceptable so we pursued a legal claim for loss of business. It was a David and Goliath battle."

Excelsior was paying for BT's highest level of maintenance - the Total Care package - which guaranteed an all-year-round four-hour response, so it expected full support.

The problem had been caused by BT processing a dummy order that moved the six telephone numbers on to a set of non-existent digital lines.

Laceys had to obtain court orders to compel BT to disclose documents revealing what the problem had been.

Commercial litigator Mark Timberlake of Laceys said: "The case was brought in Bournemouth County Court but it doesn't open the doors for similar claims as it was settled in the nick of time outside of court - so a precedent was not set.

"There were risks to Excelsior throughout the case because BT was obviously determined to fight it all the way, which could have cost Excelsior a lot of money.

"It took a lot of courage to see it through as it's always difficult to prove loss of profit.

"BT was relying on its limitation of liability contract clauses which say its pay-out in this kind of case is capped to certain figures - which we maintained was an unfair contract term and BT didn't eventually produce any evidence to dispute that."

Excelsior Coaches expects a turnover of £4 million this year.

BT regional spokesman Jason Mann said: "We are sorry for the problems which were experienced by this customer. BT accepted at an early stage that there had been a loss of service on three occasions during 2005/2006 and that compensation was appropriate under the BT Customer Service Guarantee Scheme.

"The claim progressed until accountancy evidence was obtained to establish the actual loss suffered by the company. Settlement was reached out of court in April of last year.

Ms Tilbury responded: "Whilst we received the compensation last year the costs have only just been settled which is why we have gone public now."

Mr Timberlake concluded: "It's always important for businesses to carry out a cost benefit analysis. Businesses should only bring such actions if they're prepared to lose. Such cases are difficult to prove the loss of profit."