A group of 28 P.E.I. snow crab fishermen have lost their right to sue Ottawa for compensation for a quota of the catch taken from them and given to native fishermen.

The federal court of appeal last week overturned a decision made last year giving the fishermen the right to sue.

The 2006 management plan for the Department of Fisheries and Oceans took 11 per cent of the Island's snow crab quota and gave it to native fishermen. The government offered $37.4 million in compensation for the quota, on the condition the fishermen would not make any further claim.

The fishermen refused to sign and last year the federal court ruled that asking the fishermen to sign the agreement was not part of the management plan, and said the compensation must be paid.

The court also awarded the fishermen their court costs.

The appeal ruling means the Island fishermen do not have to be paid any compensation.