Nearly 25,000 motorists are to have speeding fines refunded and points removed from their licences because of an administrative blunder. What is described as an "historical clerical error" in Dorset means that police and the local speed camera partnership have to track down drivers caught by a single camera over the past decade.
The potential bill could be more than £1 million, if every driver is contacted.
The camera, monitoring westbound traffic on the A35, was supposed to enforce a 30mph limit in Chideock, a small rural village in the west of the county.
Alan Dawe, a lorry driver, who was caught travelling at 41mph on the road, challenged the fine and during the court hearing discovered that the paperwork giving legal authority to the speed camera identified its location incorrectly.
As a result every speeding ticket issued since the original Traffic Regulation Order was drafted is illegal.
A spokesman for the Dorset Strategic Safety Camera Partnership said it was contacting all 24,889 motorists to inform them of the error, outlining what they need to do to get their fines refunded. If the penalty points are still on their licences, they will be rescinded.
The spokesman added that claims for compensation from motorists who faced higher insurance premiums would be considered on a "case by case basis".
Safety camera partnerships have been forced to refund tickets for a number of technical reasons.
In August 2005 nearly 5,600 motorists had their fines refunded and penalty points rescinded after it was discovered that the speed limit sign next to a camera in the heart of London had been put in the wrong place. It cost the London Safety Camera Partnership £335,880.
"There have been a number of technical problems and difficulties with signage which has led to fines being refunded," said Claire Armstrong of the anti-camera campaign group, Safespeed.
"We welcome this news, the law does have to be enforced appropriately."

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