Croft circuit near Darlington is under serious threat after a judge ruled it should pay a local resident £150,000 in compensation for noise nuisance and a subsequent apppeal won't be decided on until later this year.

The track would be in serious danger of closing because if the ruling is upheld, it sets a precedent for other residents to also sue for nuisance caused not by races, but by testing.

In a very complex suit and counter-appeal, Derek and Julia Watson, and their daughter Jill Wilson, said their enjoyment of their homes has been gravely affected by loud, intrsuive and repetitive noise.

Last April, High Court Judge Mr Justice Simon ruled in favour of the family, and awarded them £150,000 in compensation, plus ordered Croft Promo-Sport to pay £700,000 in costs.

In his ruling last year, Mr Justice Simon said they had been “deeply affected by the noise from the circuit for a number of years”.

Their objection was not to car and motorbike racing events, which take place on the track on about 50 days a year, but to vehicle testing days and track days, when members of the public drive cars around the track at high speed.

The judge awarded them damages based on the “blight” on the value of their homes caused by the noise, and for their “loss of amenity” in their homes.

However, the same judge refused to grant an injunction restricting the track to 40 "noisy" days per year. The family is appealing against this.

Richard Jones, representing Croft-Promo-Sport, said the court decision would have serious implications for the future of the racetrack and had left the company exposed to huge legal costs, and open to other potential claims by an “uncertain number” of neighbouring landowners.

Ruling judges at the Court of Appeal are expected to reserve their decision until later this year.