Mercedes-Benz dealers rebelling against DaimlerChrysler's decision to terminate their contracts at the end of this year will be liable to pay the the company's costs if their High Court action fails.

MB-UK has revealed today more details of the High Court hearing on Monday, the first stage in the legal battle to get a withdrawal of the termination notices issued in December.

MB-UK welcomed the court's decision that it would be able to recover its legal costs from all the dealers involved if they lose the action.

"We are now happy to have this case dealt with quickly and remain fully confident the court will rule our actions were lawful," said Dermot Kelly, director of Mercedes-Benz Cars UK. A full hearing, lasting up to five days, is due to begin on July 16.