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11 May 2011
Last updated at 05:43 ET
The Supreme Court has allowed appeals by two victims of miscarriages of justice who were refused compensation after their murder convictions were overturned.
However, a similar appeal by a third man was rejected.
The court said the test for giving compensation to those wrongfully convicted should be redefined.
The case could have implications for dozens of former prisoners in England, Wales and Northern Ireland.
Lord Phillips, president of the Supreme Court, said the new test should ensure that innocent defendants are not precluded from obtaining compensation because they cannot "prove their innocence beyond reasonable doubt".
People who have been wrongfully convicted are entitled to compensation only if they can show there has been a "miscarriage of justice".
Beyond reasonable doubt
But the meaning of the phrase has been unclear since a Law Lords ruling in 2004 which came up with different definitions.
The version adopted by the government has resulted in compensation being denied to people because they could not prove their innocence beyond reasonable doubt.
The men involved in the Supreme Court case had seen their claims for compensation rejected despite them being cleared by the Court of Appeal.
The two successful appeals are from Northern Ireland.
Raymond McCartney was jailed in January 1979 for murdering an RUC officer, Patrick McNulty, and a businessman, Jeffrey Agate.
During his 17 years in jail he became a senior IRA officer and took part in hunger strikes in the Maze prison. His conviction was quashed in 2007 and he is now a Sinn Fein member of the Northern Ireland Assembly.
Eamonn MacDermott was also convicted of murdering Det Con McNulty, and of membership of the IRA.
Both men were cleared on appeal in 2007 after judges declared unease about the safety of the guilty verdicts, but two previous bids for compensation have been refused.
The appeal that was rejected by the Supreme Court on Wednesday concerned Andrew Adams, who spent 14 years in jail after being wrongly convicted of murder.
Mr Adams, from Newcastle, was found guilty in 1993 of shooting retired science teacher Jack Royal, but was released in 2007 by the Court of Appeal.
The High Court rejected his compensation bid, and Mr Adams took his case to the Court of Appeal.
Wider impact Barry George, cleared of killing Jill Dando, is not one of the men but his lawyers also took part in the hearing.
Mr George spent eight years in jail before being acquitted at a retrial in August 2008 of the BBC presenter's murder.
The High Court later ruled he was entitled to a judicial review hearing over the government decision to refuse him compensation.
BBC home affairs correspondent Danny Shaw says if the court widens the meaning of "miscarriage of justice" the government will have to reconsider Mr George's claim - along with many others that have been turned down.
The judgement is unlikely to affect Scotland where there are fewer restrictions on eligibility for compensation.
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However, a similar appeal by a third man was rejected.
The court said the test for giving compensation to those wrongfully convicted should be redefined.
The case could have implications for dozens of former prisoners in England, Wales and Northern Ireland.
Lord Phillips, president of the Supreme Court, said the new test should ensure that innocent defendants are not precluded from obtaining compensation because they cannot "prove their innocence beyond reasonable doubt".
People who have been wrongfully convicted are entitled to compensation only if they can show there has been a "miscarriage of justice".
Beyond reasonable doubt
But the meaning of the phrase has been unclear since a Law Lords ruling in 2004 which came up with different definitions.
The version adopted by the government has resulted in compensation being denied to people because they could not prove their innocence beyond reasonable doubt.
The men involved in the Supreme Court case had seen their claims for compensation rejected despite them being cleared by the Court of Appeal.
The two successful appeals are from Northern Ireland.
Raymond McCartney was jailed in January 1979 for murdering an RUC officer, Patrick McNulty, and a businessman, Jeffrey Agate.
During his 17 years in jail he became a senior IRA officer and took part in hunger strikes in the Maze prison. His conviction was quashed in 2007 and he is now a Sinn Fein member of the Northern Ireland Assembly.
Eamonn MacDermott was also convicted of murdering Det Con McNulty, and of membership of the IRA.
Both men were cleared on appeal in 2007 after judges declared unease about the safety of the guilty verdicts, but two previous bids for compensation have been refused.
The appeal that was rejected by the Supreme Court on Wednesday concerned Andrew Adams, who spent 14 years in jail after being wrongly convicted of murder.
Mr Adams, from Newcastle, was found guilty in 1993 of shooting retired science teacher Jack Royal, but was released in 2007 by the Court of Appeal.
The High Court rejected his compensation bid, and Mr Adams took his case to the Court of Appeal.
Wider impact Barry George, cleared of killing Jill Dando, is not one of the men but his lawyers also took part in the hearing.
Mr George spent eight years in jail before being acquitted at a retrial in August 2008 of the BBC presenter's murder.
The High Court later ruled he was entitled to a judicial review hearing over the government decision to refuse him compensation.
BBC home affairs correspondent Danny Shaw says if the court widens the meaning of "miscarriage of justice" the government will have to reconsider Mr George's claim - along with many others that have been turned down.
The judgement is unlikely to affect Scotland where there are fewer restrictions on eligibility for compensation.
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