FINE GAEL MEP Jim Higgins and former Fine Gael minister for agriculture Ivan Yates have secured €100,000 each, plus their legal costs and an apology, in settlement of their libel action over two articles in the Sunday Independentnewspaper.
Mr Higgins and Mr Yates had complained that the articles, published in 2004, had defamed them by publishing untrue allegations by a man styling himself Kevin Fulton.
They complained that Mr Fulton was referred to by the newspaper as a "rogue former spy", and the articles meant or were understood to mean the two men were British MI5 agents who had colluded with the IRA in a multimillion pound EU milk fraud.
They claimed the newspaper knew well, at the time of publication, that the allegations were false.
The first article complained of was published on October 17th, 2004, under the headline: "Tribunal to unmask MI5 agents who sat in Dáil".
The second article, published on November 21st, 2004, was headlined: "FG politicians rubbish fraud claims. Bizarre allegations of multimillion EU scam by rogue former spy denied by Jim Higgins and Ivan Yates."
Mr Higgins's action was due to open in the High Court before Mr Justice Éamon de Valera and a jury yesterday, but following several hours of talks between lawyers, Paul O'Higgins SC, with Jim O'Callaghan SC, for Mr Higgins, told the court the action was settled.
Mr O'Higgins said a separate action over the same articles by Mr Yates, listed for hearing today, was also settled.
As part of the settlement, Eoin McCullough SC, with Oisín Quinn SC, for Independent Newspapers, then read an apology to the court.
It stated: "On the 17th October and the 21st November 2004, the Sunday Independent published two articles which contained allegations made by a man styling himself Kevin Fulton concerning Mr Jim Higgins MEP, the prominent politician, and Mr Ivan Yates, the former minister for agriculture.
"We are happy to reiterate that the serious allegations made by him are without foundation.
"We also acknowledge that the allegations were extremely upsetting and distressing for them.
"The Sunday Independentwishes to acknowledge that both Mr Higgins and Mr Yates have made and continue to make a dedicated and distinguished contribution to public life and in business in which they have always acted with the utmost probity.
"We wish to take this opportunity to apologise sincerely to Mr Higgins and Mr Yates for the damage done by the articles."
On that basis, the judge struck out both actions and made orders for costs in favour of the politicians against Independent Newspapers.
Outside court, Mr Higgins said he was very relieved the case was over and that the reputations of both men had been vindicated. He said the articles represented "a very low form of journalism" and it was wholly irresponsible to publish such material about two politicians with "totally unblemished careers".
Damien Tansey, solicitor for both men, said they had had no choice but to come to court to have their good names vindicated. It had taken four years for the newspaper to apologise for publishing such utterly groundless claims, he added.