PANIC struck certain Sunday Tribune executives following the appointment of key new management personnel in early 1994, a court has been told.

The spread of fear and paranoia among some members of management at the newspaper was described to Judge Raymond Groarke in the Circuit Civil Court before a former manager abandoned his £17,000 breach of contract claim on all in settlement terms of £1,500.

Mr David O'Brien, formerly of Glenview Drive, Limerick, and now chief executive of a Scottish provincial newspaper, claimed he was "let go" by the Sunday Tribune only three months into an alleged year long contract as contracts operations manager.

He told Mr Hugh Mohan, counsel for the Tribune, that staff fought to protect their own positions after things started unravelling following management changes.

Mr O'Brien told his counsel, Mr Dan Boland, that his immediate boss, Mr Ciaran Ring, had been let go by the then managing director, Mr Cathal O Caoimh, after he, Mr O'Brien, had helped in resolving difficulties at the Tribune. The following Monday he had reported for work even though he knew he, too, would be let go.

Some people had already been let go. It had become very evident to him that the new financial controller, Mr Frank Cronin, had more control than the mere signing of cheques.

Mr O'Brien said Mr Cronin later became managing director and had not followed through on an assurance given to him when he was being let go that he would be considered again for a commercial position. At the time Mr Cronin had told him to play along.

Mr Mohan said this was going to be denied by Mr Cronin and put it to Mr O'Brien that no such assurance had been given to him.

He told Mr Mohan he had been recruited for the Tribune by Mr Ring who also had a coownership of a company, Loradeck International Ltd, which had run several lottery services. His terms were £450 a week payable by the Tribune, although in voiced by Loradeck, and another £150 per week from Loradeck for afterhours services and work done for that company.

He denied he had been employed and paid by Loradeck, which had then invoiced the Tribune for his services to it.

Later, under cross examination by Mr Mohan, Mr O'Brien conceded he had drawn up his own terms of contract in his own words and dictated them to a secretary and had presented them for signature to Mr Ring.

When told Mr Ring would be denying the signature was his, he said he had not seen him sign it but was "sure it was his" and later said "I hope that it is."

When Judge Groarke said he would like to give the parties an opportunity for talks "having regard to what I have heard" the matter was settled.