Six Newcastle United supporters face bankruptcy after underinsuring on their legal expenses policy following advice from the football club itself.
The supporters took out insurance through intermediary Greystoke to cover £118,000 in legal costs in their battle to stop their club removing personal seats and replacing them with corporate boxes.
But in a battle that went all the way to the Appeal Court, judges agreed on an earlier decision that Newcastle had a legal right to relocate fans and install boxes as part of a major renovation scheme to increase capacity.
Unless the Newcastle board agrees to waive the outstanding amount, some of the fans, who took their action on behalf of 250 others, risk losing their homes.
Richard Cramer, of solicitors McCormicks, who acted for the six, said the legal costs escalated beyond expectations because the club "overindulged" in pursuit of the case.
When the case began, the club told the supporters that £100,000 would cover the costs of both sides in the action.
But Mr Cramer stressed that it was made clear to the six that they would be personally liable if the costs overran the insurance. He said there was absolutely no criticism of Greystoke. "Indeed we praise the insurer," he added.
The money to pay the premiums was raised from fans throughout the country.
Mr Cramer said McCormicks would not be claiming its own legal costs but did not know how the club would behave.
The board is likely to make its decision on whether to pursue the money when it meets in the next few days.
