The Archbishop of Canterbury yesterday called for "a period of healing" at Westminster Abbey after the institution's organist lost his appeal against dismissal for financial misconduct.
The sacking of Dr Martin Neary and his wife and secretary, Penelope, in April divided the Church of England and developed into a legal tussle costing up to £750,000.
It ended yesterday when Lord Jauncey of Tullichettle, a retired judge called in by Queen Elizabeth to settle the dispute, ruled that the couple's conduct had "fatally undermined the relationship of trust and confidence which should have subsisted between them and the Abbey".
In a 12-day hearing held behind closed doors, Lord Jauncey heard how the Nearys set up a company in the organist's name to handle proceeds from concerts by the Abbey's choir without telling the Dean, the Very Rev Dr Wesley Carr, or the Abbey's governing body, the Chapter.
The couple made "secret profits" by retaining "fixing fees" paid to Mrs Neary for organising concerts and recordings, and Dr Neary sought a substantial pay rise for his wife without mentioning that she was receiving the fees, said Lord Jauncey.
But he also had criticisms for the Abbey management, and said that the procedure they used to sack the couple "must score gamma minus on the scale of natural justice".
Speaking after the ruling, Dr Neary, who arranged the music for the funeral of Princess Diana, said that he felt his name and that of his wife had been cleared of allegations of dishonesty.
He said: "We have had 10 fulfilling and demanding years at Westminster Abbey, during which we have contributed to the worship and to its musical reputation.
"While we have been found to have made errors of judgment, which we accept and regret, we consider that the penalty is out of proportion."
The ruling will force them to leave their home in the Abbey buildings, he said.
The Nearys won the support of several prominent MPs, including the former prime minister, Sir Edward Heath, former cabinet minister, Mr John Gummer, and the Labour MP, Mr Frank Field.
Mr Field this evening said he was "perplexed" by the judgment, adding: "The whole thing has been treated like a serious fraud case, with between half and three-quarters of a million pounds spent on it, when it could have been sorted out over a cup of tea."
But Dr Carr said: "Dr Neary was dismissed because the Abbey had discovered that he and Mrs Neary had made `secret profits' by taking fixing fees and other surpluses on bookings for Westminster Abbey Choir, estimated at thousands of pounds, without the Abbey's knowledge.
"We are extremely saddened by this process, not least the Nearys' predicament. The Dean and Chapter feels vindicated in the action it took. We believe we acted with fairness and with dignity."