Legal proceedings taken by one of Ireland's leading advertising agencies against its former chief executive have been settled, the High Court was told yesterday.

Carat Ireland took action to enforce a 12-month "gardening leave " clause in the contract of its former chief executive Alan Cox, which would have prevented him from taking up a new role at a rival firm, Starcom Mediavest.

The case was due to open yesterday but, at the outset, Rossa Fanning, for Carat, told Mr Justice Kevin Feeney that all matters between the parties had been settled and the action could be struck out.

Mr Cox was not present in court, and no terms of the settlement were given.

Carat Ireland, which is part of the Aegis group, has a number of high-profile clients such as Vodafone and the National Lottery. It is understood that Mr Cox was paid €200,000 a year by Carat, and was responsible for a third of the company's €83 million turnover.

Earlier this year he announced he was switching to a similar role at Starcom Mediavest, whose clients included 02, Kerry Foods and Golden Pages.