Sentencing for health and safety breaches relating to the electric trams, by the Department of Infrastructure, has been adjourned over a legal issue.
The offences were over a four-year period and have been admitted.
One resulted in a passenger breaking her leg.
The case was due to be sentenced in summary court however, it was said that the prosecution felt that it should be sentenced at the Court of General Gaol Delivery.
Magistrates had previously accepted summary court jurisdiction but the prosecution said that they had incorrectly advised the magistrates of the maximum penalty in summary court.
It was also said that there is a dispute over whether the sentencing should consider the revenue of the Manx Electric Railway or the Department of Infrastructure when determining any fine.
Defence advocate Peter Taylor disagreed that the case should now go to the higher court.
A hearing will now be held on December 15 to decide where sentencing will take place.