The Northern Ireland Police Association's legal challenge to the Police Ombudsman's critical report of the handling of the Omagh bomb investigation was settled out of court yesterday.
After day-long talks between both sides it was announced in the High Court in Belfast that the association was discontinuing its application for a judicial review of Ms Nuala O'Loan's report.
The review sought to quash the report, which was highly critical of the then Royal Ulster Constabulary's handling of the investigation into the "Real IRA" attack in August, 1998, which killed 29 people, two unborn babies and injured many more.
The report accused the then chief constable Ronnie Flanagan of "defective leadership" and "poor judgment". He responded by describing the report as "inaccurate and error-ridden".
The association's solicitor, Mr Dorcas Crawford, said before the hearing that while much of the report focused on the leadership and judgment of senior officers, it was the association's case that many officers of lower rank were not given the benefit of the most fundamental rule of natural justice - notification of the case against them.
When the parties returned to court in the afternoon, an agreed statement, read by the association's lawyer, Mr Bernard McCloskey QC, said the Ombudsman now acknowledged with hindsight that certain Police Service of Northern Ireland members should have been given notice of the allegations against them and a better opportunity to respond, having regard to the requirements of natural justice. However, she believed there was considerable urgency in producing the report.
The statement added: "The Ombudsman, having regard to all the information in her possession, now and then, confirms the contents and conclusions of her report."
Outside the court, Ms O'Loan said: "My report stands, the challenge is withdrawn. I have been enormously concerned for the families throughout this process and I am glad they can take some comfort in the fact the report is not challenged.
"It is my understanding that the PSNI have adopted all the recommendations in relation to the Omagh investigation and these have been taken on board by senior management and the new investigation team."
Assistant Chief Constable Stephen White said the PSNI looked forward to a healthy and improved working relationship with the Ombudsman and those in her office.
In formally dismissing the application for judicial review, Mr Justice Kerr said he was conscious of the complexities and therefore was happy to give the time necessary to reach what he considered to be a commendable disposal of difficult litigation.