A former Army captain, Mr James Kelly, is to be paid €70,000, including costs, as part of the settlement of his High Court action for libel in a book, The Arms Trial, written by Justin O'Brien and published by Gill & Macmillan.
The settlement was announced yesterday and an apology was also read in court to Mr Kelly.
Mr Kelly (74) had sued Gill & Macmillan Ltd, of Hume Avenue,Park West Industrial Estate, Dublin, and former Taoiseach Dr Garret FitzGerald.
Outside the court, Mr Kelly said the €70,000 is being paid by the company.
The apology read by Mr Eoin McCullough SC, for the defence, said Gill & Macmillan Ltd, as publishers of The Arms Trial by Justin O'Brien, wished to point out that any references to Mr Kelly in the book "suggesting or implying that Capt Kelly was guilty of wrongdoing or improper conduct or that he had acted upon inappropriate orders from persons other than his military superiors and/or the minister for defence are untrue".
The apology continued: "We unreservedly withdraw the statement attributed to Dr Garret FitzGerald at page 220 of the book that the acquittal of Capt James Kelly was a totally perverse verdict and the jury were intimidated or disregarded the evidence and acknowledge Dr Fitz-Gerald's comments as set out therein are inaccurately quoted.
"We acknowledge that Capt Kelly was guilty of no wrongdoing or improper conduct and at all material times acted properly and bona fide in his capacity as an officer in the Permanent Defence Forces.
"We apologise for any hurt and distress caused to Capt Kelly by reason of the publication."
Mr Justice Quirke then struck out the action with no order.
Afterwards, Mr Kelly said he was delighted with the outcome which he described as his "first public vindication" in 33 years.