A woman has said she “lost faith in everything” after her case was dropped amid claims she could have had an episode of “sexsomnia”.

Jade Blue McCrossen-Nethercott contacted police in 2017 after waking up and feeling that she had been raped while she slept.

The charges were dropped days before the trial three years later because lawyers for the alleged perpetrator claimed she had “sexsomnia”, a medically recognised, but rare, sleep disorder which causes a person to engage in sexual acts while asleep.

The Crown Prosecution Service (CPS) has now admitted it was wrong in closing her case, saying it should instead have been taken to trial.

It has apologised and agreed to pay the 32-year-old £35,000 in damages.

Ms McCrossen-Nethercott told the PA news agency she was left “shocked to the core” after being told the case had been dropped.

She said: “It was soul-destroying. I reflect back on that day as being an absolute blur. It completely upended me. My life spiralled and I lost all faith in everything.

“It was really like my whole life crumbled around me at that point.

“Being told you potentially have something when you’ve had no previous history of it … there’s a lot of sleep history that could have been looked into. It’s just really heartbreaking.”

Ms McCrossen-Nethercott, who has waived her right to anonymity, said she reported the offence to the police within hours. The suspect offered no comment when questioned and the CPS made the decision to charge him with rape.

But in 2020, just days before the trial was due to start, Ms McCrossen-Nethercott was told by the CPS her rape case would not be taken to trial because of defence claims that she had experienced an episode of sexsomnia.

The CPS said two sleep experts had given their opinion on the case after a police interview with Ms McCrossen-Nethercott where she was questioned about her sleep habits.

Neither expert met or spoke to her and she was instead asked to fill out a 15-question questionnaire.

Ms McCrossen-Nethercott said she did not have sexsomnia. But sleep experts were not able to rule out the possibility that she could have had an isolated episode on the night of the incident.

Despite never appearing before a jury, the defendant was formally acquitted, leaving the case unable to be reopened without compelling new evidence.

In 2021, Ms McCrossen-Nethercott lodged an appeal through the CPS victims’ right to review system.

In response, she received a letter of apology from a chief crown prosecutor, independent of the CPS department which made the original decision to close her case.

They admitted the CPS was wrong in closing her case, saying it should instead have been taken to trial. They also told her that if it had gone to court the defendant would have likely been convicted.

She said: “It was a really, really tough pill to swallow … to actually hear it from them did hit hard, and I do sometimes reflect back and think maybe if they did stick to their guns it would have been easier for me to process.

“It’s a very uncomfortable thing to sit with knowing that my perpetrator is still in the city I live in and has faced no real accountability.”

Ms McCrossen-Nethercott welcomed the CPS’s apology and payout of £35,000, but said it was impossible for her to feel like a line had been drawn until she sees tangible evidence systems were being put in place to prevent future incidents.

She said: “There’s definitely a sense of triumph. I’m really proud that we’ve managed to do this with the Centre for Women’s Justice. This is a remarkable outcome.

“The financial side of things hasn’t been very important to me in this process. I just hope that if anyone else has to go down this pathway at least there’s a bit of a ballpark figure now.

“But for me it’s more about setting a precedent, raising awareness and accountability.

“I am still waiting for the lessons learned from CPS, something that they have assured me of since June 2021. They chucked the money my way, but not the actual tangible information that I’ve been pushing for for literally years.

“So that is something that is sitting with me. I don’t think I’ll have a line in the sand until I’ve received that information and I feel that something has really come from this, and they’re taking it seriously.”

In the year to March 2024, 65,913 rape cases were recorded by police in England and Wales (excluding Devon & Cornwall police). Of these cases, just 2.6% have so far resulted in a suspect being charged (or receiving a summons), according to Home Office figures.

Earlier this year, the Observer uncovered a rise in the use of sexsomnia as part of defence cases in criminal trials. It found 80 cases over the past 30 years where defendants accused of rape, sexual assault or child sexual abuse claimed to have been sleepwalking or suffering from sexsomnia at the time.

On this, Ms McCrossen-Nethercott said: “I think it is incredibly concerning, and it just completely shines a light on the fact that the CPS and expert witnesses need to do more. In its current form, it is open to manipulation.

“They really failed me, and I think they’re failing a lot more people.

“I think the legal system gets frightened by it. They don’t feel they have like faith in their own abilities to challenge it. It’s just much easier to have a risk averse approach.”

A CPS spokesperson said it has apologised unreservedly and agreed to pay the Ms McCrossen-Nethercott £35,000 in damages.

They added: “We are committed to improving every aspect of how life-changing crimes like rape are dealt with and are working closely with police from an early stage to ensure we focus on the behaviour and actions of the suspect, not the victim.

“We remain positive about the progress being made and recognise there is still a long way to go to improve outcomes for victims, so more people can come forward and report with confidence.”

Kate Ellis, a solicitor at the Centre for Women’s Justice (CWJ), who represented Jade, said: “Claims from victims against the CPS are difficult legally and payouts are extremely rare.

“This is the first case of which I’m aware in which a rape victim has been awarded compensation by the CPS in relation to a decision that’s been taken to discontinue their case before trial.”

Harriet Wistrich, director of CWJ, added: “We pay tribute to Jade for her courageous battle to hold the CPS accountable and her work to change the system, so that other victims are less likely to be denied justice in the future.

“A lasting tribute would be for the CPS to introduce a meaningful mechanism enabling victims to challenge decisions to offer no further evidence in sexual offence cases, so that wrong decisions can be reversed before it is too late.”