A police chief has been ordered to make a £1,500 payout to a top loyalist paramilitary in Northern Ireland, it emerged tonight.
Jim Gray, one of the Ulster Defence Association's six commanders, was awarded the cash in an out of court settlement.
Gray, 42, took a High Court action against Chief Constable Hugh Orde after he was arrested at a Chinese restaurant in east Belfast two years ago.
Senior police officers were outraged by having to make the payment, sources said tonight.
One disclosed: "They are furious that this has happened."
Gray, a flamboyant businessman with bleached blonde hair, heavy gold jewellery and all year round tan, has been questioned several times by detectives in Belfast and was once a close associate of the feared terrorist Johnny "Mad Dog" Adair before they fell out.
He was later shot in the face at the height of a bitter loyalist feud in September 2002 which claimed a number of lives.
Gray, nicknamed "Doris Day" because of his appearance, had gone to the home of a murdered rival when the gunmen opened fire.
Even former associates were amazed at the outcome of the legal action.
One said: "The public will just be as astounded as we are about this.
"Gray, in our opinion, is probably one of the most unpopular people in Northern Ireland. If he had any sense he would become invisible."
His decision to sue the police centred around their handling of his arrest, which was carried out weeks after he survived the murder bid.
A number of friends were with him at the time of his detention.
A Police Service of Northern Ireland spokeswoman tonight confirmed the case had been settled.