A CANCER victim died hours after being told council officials were considering a third court bid to claw back her £240,000 asbestos compensation payout.

Dianne Willmore, 49, was awarded the damages after convincing a High Court judge in July that her time as a pupil at the former Bowring Comprehensive School, in Huyton, caused her incurable lung cancer.

The mother-of-two claimed the slow developing cancer – notorious for the agonising pain it causes – was caused due to exposure to asbestos dust released during school building work and from chipped tiles in its toilets.

But Knowsley Council refused to accept the ruling and took the terminally-ill former supermarket worker to London’s Civil Appeal Court, arguing it had not breached its duty of care and it was not “reasonably practicable” to protect her from asbestos exposure.

On Wednesday, Mrs Willmore, who was too ill to attend the appeal, finally looked to have won her battle when Lord Justice Sedley backed the original decision.

But within hours, Knowsley Council released a bullish statement stressing it was “extremely surprised and disappointed by this decision” and confirmed “we have requested leave to appeal this decision to the Supreme Court”.

Yesterday morning, Mrs Willmore, who was diagnosed with her mesothelioma in spring 2007, died.

After the Daily Post broke the news of her death to the council, it refused to rule out pursuing the appeal – but, in a clear change of tack, stressed it had always been “extremely sympathetic” towards her and offered condolences to the family.

Mrs Willmore’s legal representative Ruth Davies, a partner of Liverpool-based John Pickering and Partners LLP, said her client was “delighted” about Wednesday’s court ruling but had felt “very angry the council continues to fight”.

Describing Mrs Willmore as a “warm, compassionate, funny outdoor person who lived life to the full”, she said the legal battle meant her client felt unable to spend and “get some pleasure from the compensation awarded”.

Last night, Ms Davies said she hoped the council would reconsider any fresh appeal following Mrs Willmore’s death.

Bowring was one of the first comprehensives built in the 1960s.