Two men who spent 18 years in jail for the murder of Carl Bridgewater, before being cleared, are fighting to be allowed to keep all their compensation.
Vincent Hickey, 49, and Michael Hickey, 42, of Birmingham, were jailed in 1979 over the boy's murder at Yew Tree Farm.
A court ruled in 2004 that the cousins should pay back what they had saved on "board and lodgings" while in jail.
In an appeal, their barrister told Law Lords it was against common sense to deduct "living expenses".
'Generous compensation'
Ian Burnett QC, representing the Independent Assessor is to argue the deductions were "just and reasonable".
The appeal is being held before five Law Lords at the House of Lords.
On Monday, the Hickeys' barrister Philip Engelman told them: "It is revolting to the ordinary man's sense of justice to have a wrongfully convicted person effectively being asked to pay for his board and lodgings during the time he was incarcerated."
The barrister is also representing Michael O'Brien, who spent 10 years in prison after being wrongly convicted in 1998 of the murder of a Cardiff newsagent.
The Hickey's had their convictions quashed at the Court of Appeal in 1997.
Michael Hickey was awarded £990,000 in compensation and Vincent Hickey £506,220, subject to the deductions.
Mr O'Brien was awarded £670,000 subject to similar deductions.
"We say there should be generous compensation as a matter of domestic law and international law and it is an antithesis of such generosity to deduct from the men the costs of their accommodation," Mr Engelman said.
Paperboy Carl, 13, from Stourbridge, was shot dead in September 1978 at Yew Tree Farm, Wordsley.
The case has been adjourned until Tuesday.
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