'Hot Press' editor withdraws claim

The claim related to liability for alleged losses of €1.5 million arising from the failure of the museum venture.

Mr Stokes and his wife Máirín Sheehy had brought proceedings against Mr O'Brien, music promoter Denis Desmond, Riverdanceduo John McColgan and Moya Doherty, and former Microsoft executive Tony Burke. The case in relation to the other defendants was settled earlier this week and Mr Stokes said he was "very happy" with the settlement.

Mr McColgan and Ms Doherty said in a statement afterwards they had made "no payment whatsoever" to Mr Stokes and his wife arising from the proceedings and, having agreed an indemnity with Mr Desmond, had not participated in the hearing.

Because no agreement was reached with Mr O'Brien, the case against him had proceeded with Mr Stokes being cross-examined by Senan Allen SC in relation to the claims advanced against Mr O'Brien. Yesterday, however, Brian O'Moore SC, for Mr Stokes, said the claim against Mr O'Brien was being withdrawn on the basis of terms agreed by his side and Mr O'Brien.

The proceedings arose following the closure of the museum in October 2001. All defendants had denied any liability for losses incurred by Steeple Investments Ltd, the company run by Mr Stokes and Ms Sheehy. Mr Stokes had claimed Mr O'Brien, Mr Burke and Mr Desmond were liable for the bulk of the alleged €1.5 million losses while, he claimed, Mr McColgan and Ms Doherty were liable for over €158,000.

As Steeple owned other assets on behalf of Mr Stokes and his wife, they had sought indemnities to cover 66 per cent of any losses that might be incurred as a result of Steeple being used as a vehicle under the business expansion scheme, the court was told. .

• In the statement issued on behalf of John McColgan and Moya Doherty, it was stated that in circumstances where their financial exposure was limited to a maximum sum of €158,000, the likelihood of very significant legal expenses and the result likely to be financially much more important for the other defendants, Mr McColgan and Ms Doherty had agreed an indemnity from Mr Desmond and did not participate in the hearing.