A judge is to decide the amount of compensation to be paid to entertainer Michael Barrymore by Essex Police.
The hearing, which begins at London's High Court on Monday, is a result of Barrymore being arrested and questioned following the discovery of the body of a butcher in a swimming pool at his Roydon home.
Barrymore, 65, claims that his arrest and detention on suspicion of rape and murder, which received widespread publicity, had a devastating effect on his career and earnings.
He was arrested in June 2007 - six years after the death of 31-year-old Stuart Lubbock, of Harlow, Essex.
The comedian and TV presenter was never charged with any offence.
Last year, his counsel Lorna Skinner said that it had never been established that Mr Lubbock was either raped or murdered.
She told a judge that Essex Police were arguing that the entertainer should receive ''nominal'' damages.
It has been reported that Barrymore is seeking £2.5 million damages.
One issue at the trial will be whether there were ''reasonable grounds'' for his arrest.
Barrymore has taken legal action under his real name of Michael Parker.
The hearing before Mr Justice Stuart-Smith is expected to last five days.