A TWO-AND-A-HALF year running battle between a council and local taxi drivers was taken to the High Court yesterday.

The court case will set a national precedent on cabbies' driving tests - and is of such significance that Justice Alan Wilkie reserved his judgment on the case.

The row has escalated since 2002 when Darlington Borough Council imposed a driving test on taxi drivers applying for new licences.

Yesterday, a group of resolute cabbies set off at 3am to travel to the majestic wood-panelled Royal Courts of Justice, off London's Strand, to support the case.

Justice Wilkie is expected to make a ruling by Christmas - but the union Amicus has warned that a finding in the council's favour could halve the number of cabs across the country and increase the number of illegal touts.

Taxi drivers in Darlington, many of whom have been in the industry more than 30 years, say the Driving Standards Agency test, which costs them £47 and has a 50 per cent failure rate, is a poor indication of driving ability.

Many have refused to sit the test, including Malcolm Kaye, 54, a cabbie of 33 years, around whom yesterday's case focused.

Mr Kaye was refused a licence in November last year because he had not taken the test, but, with the backing of Amicus, he took the council to court and, in July, magistrates in Bishop Auckland ruled the council had been unlawful.

The council immediately pledged to take the case to the High Court - but it will face a £50,000 bill if the ruling goes against it.

After hearing both arguments and acknowledging the defiant cabbies who had travelled from Darlington, Justice Wilkie said: "This is obviously a case that affects a lot of people locally and will affect a lot of local authorities around the country."

More than 40 councils now use the test and all eyes will be focused on this outcome.

Gerry Hunter, regional officer for Amicus, said: "We are pleased the court noted the national implications - it is a difficult one to call."

Much of the four-and-a-half hour debate focused on highly technical points of law.

The court heard that Mr Kaye had been a cab driver for 33 years without a single complaint from the public. In those years, he had one speeding conviction.

The taxi drivers lined the back rows of the court, arms folded, in front of the century-old law journals that line the walls.

Cabbie George Jenkinson said many Darlington taxi drivers had already quit the trade after the row and more have vowed to retire should the council win.

"We haven't lost, and I think we will win. Cabbies across Darlington are waiting to see what will happen," he said.

Mr Kaye said: "I am disappointed we didn't get a result because it prolongs the wait."

The cabbies had wanted grandfather rights, meaning those with long service would have been exempt from the test.

A council spokesman declined to comment.