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 a settlement of their libel action over two articles in the Sunday Independentnewspaper.
Mr Higgins and Mr Yates had complained the articles, published in 2004, had defamed them by publishing untrue allegations by a man styling himself as Kevin Fulton, a man referred to by the newspaper as a "rogue former spy", which meant or were understood to mean the two men were British MI5 agents who had colluded with the IRA in a multi-million 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 Dail".
The sceond article, published on November 21st 2004, was headlined: "FG politicians rubbish fraud claims. Bizarre allegations of multi-million EU scam by rogue former spy denied by Jim Higgins and Ivan Yates."
Mr Higgins' action was due to open before Mr Justice Eamon De Valera and a jury yesterday but, following several hours of talks between lawyers the action was settled.
Mr O'Higgins said a separate action over the same articles by Mr Yates, listed for hearing tomorrow, was also settled.
As part of the settlement, Eoin McCullough SC, with Oisin 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 Independent wishes 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".
Mr 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.