A TENANT who sued a council for making his budgie asthmatic, and a man who dug up paving slabs to fake an accident were among bogus compensation claims made to North-East local authorities this year.

The number of compensation claims against local authorities in the region have dropped, despite the increase in "no win, no fee" legal firms.

For the financial year to April 2004, Durham County Council saw the number of cases drop from 1,187 to 816.

Middlesbrough also experienced a decline, from 773 to 519. In Hartlepool, the number of claims fell from 233 to 151, and North Yorkshire recorded a small decrease, from 511 cases to 476.

All councils surveyed said most of the claims were unsuccessful.

A Middlesbrough Council spokesman said: "Some of the ambulance-chasing accident firms are going out of business because they have tried to pursue claims that are not very sensible and they have ended up losing and having to pay costs."

The problem with bogus claims has prompted Newcastle City Council to consider setting up a telephone hotline, where people can report compensation cheats.

Failed cases included a tenant who demanded his council house was redecorated then claimed the paint fumes had made his budgie asthmatic.

Another man went to court seeking a five-figure sum after breaking his ankle on an uneven pavement.

The case was thrown out after neighbours produced photographs of the man digging up the paving slabs before the accident.