A former senior official with ACCBank, who claimed to have lost his position after an internal restructuring following the collapse of ACC's proposed merger with TSB, has settled his High Court action against the bank.

Mr Jim Skelly (51), an ACC employee for the past 20 years, had applied for an interlocutory injunction against ACC restraining it from taking any steps to effect his dismissal or demotion. He claimed to have lost his position as general manager (retail banking) after an internal restructuring of the bank which, it was stated in court, had been directed by the Government in the wake of the collapse of the proposed merger.

In an affidavit, Mr Skelly claimed to have had a salary of £98,000 and a bonus of £30,000.

The action by Mr Skelly began on Monday. Shortly after it resumed yesterday morning, Mr Justice Geoghegan said it seemed to him the issue between the parties was one which would ultimately have to be settled through discussion. The judge suggested a tem porary adjournment might be helpful. When the case resumed yesterday afternoon, Mr Ercus Stewart SC, for ACC, said the action had been resolved.

Mr Justice Geoghegan said he was absolutely delighted. No matter what order he would have made on foot of the application, it was only going to be a temporary one, he said. In the end, the matter between the parties was going to have to be resolved. The case will be mentioned again in court today.