Legal principle: Peer and MPs must face criminal trial over expenses, judge rules

The judge ruled that expenses claims are not covered by parliamentary privilege – which would have given them immunity from prosecution in the courts – so former Environment Minister and Scunthorpe MP Elliot Morley and the three other men will now go before a judge and jury on charges of false accounting.

Mr Justice Saunders said his decision "clears the way for what most people accused of criminal behaviour would wish for – a fair trial before an impartial jury" for Morley, David Chaytor, Jim Devine and Lord Hanningfield.

"I can see no logical, practical or moral justification for a claim for expenses being covered by privilege; and I can see no legal justification for it either," said the Judge.

"In my judgment, the conduct alleged against these defendants is not covered by Parliamentary privilege and is triable in the Crown Court."

None of the four – who all deny the charges – was in Southwark Crown Court to hear yesterday's judgment, and Mr Justice Saunders said it had "not been easy" coming to his decision. He granted them leave to appeal.

The three former MPs, who stood down at the general election, are each accused of wrongly claiming thousands of pounds in expenses – in Morley's case more than 30,000, partly on a mortgage that had already been paid off.

Lawyers for the four had argued their expenses claims were covered by rules of parliamentary privilege, which protect MPs and Peers from prosecution when speaking in the House of Commons and carrying out their duties as an MP.

Mr Saunders said it was right to test the issue in court – warning there were "very important constitutional principles" involved – but concluded a line had to be drawn somewhere about the limits of privilege, and said the submission of an expenses form could not be considered part of parliamentary proceedings.

He said he suspected MPs and Peers – including the four accused men – "would have been extremely surprised" if it had been suggested to them before the allegations were made that their claims were covered by parliamentary privilege.

"The principle that all men are equal before the law is an important one and should be observed unless there is good reason why it should not apply," he said.

"To do otherwise would risk bringing both the courts and Parliament into disrepute and diminish confidence in the criminal justice system."

The judge added that it was preferable for "criminal allegations to be decided by criminal courts who are equipped to deal with them".

He also called for "responsible" coverage of the case to allow a fair trial after claiming some commentary about the raising of privilege as an issue had been "misconceived" and "unfair".

Morley, 57, of Winterton, North Lincolnshire, is charged with falsely claiming 30,428 in interest payments between 2004 and 2007 towards a mortgage on his home he had already paid off.

Former Bury North MP Chaytor, 60, who lives in Todmorden, is accused of falsely claiming rent on a London flat he owned, falsely filing invoices for IT work and renting a property from his mother, against regulations.

Former Livingston MP Devine, 57, of Bathgate, West Lothian, is accused of wrongly submitting two invoices worth a total of 5,505 and dishonestly claiming cleaning and maintenance costs of 3,240.

Former Essex County Council leader Lord Hanningfield, who is also known as Paul White, 69, of West Hanningfield, near Chelmsford, Essex, faces six charges of making dishonest claims for travelling allowances.

Each of the four defendants, who are all on unconditional bail, will now face a separate criminal trial, pending the outcome of any appeal.