QUINN DIRECT Insurance has settled an €8 million case brought against it by meat processors Sean Duffy Exports over an alleged breach of contract. The Galway-based firm claimed Quinn refused to reinstate a boning hall destroyed by fire in September 2004.

It is understood the settlement was for close to €3 million and included Sean Duffy Exports' costs. The case was due to proceed in the High Court sitting in Castlebar yesterday.

A spokesman for Quinn group said he could not comment on the amount of the settlement, but stressed that it was amicable.

Quinn Direct, part of the Quinn Group controlled by Sean Quinn, had undertaken to rebuild Sean Duffy Exports' factory itself, as allowed under the policy, rather than pay out on the insurance policy.

However, the job was not completed as scheduled, leading to the closure of the plant with the loss of 80 jobs and the ultimate sale of the premises, alleged Sean Duffy Exports.

The company claimed that Quinn Direct had undertaken to reinstate the boning hall by the end of September 2004. The work was delayed when it emerged in early 2005 that planning permission was required to demolish the existing hall. Planning permission was obtained in late 2005, but work did not recommence until early 2006.

The two sides subsequently fell out over the purchase of machinery to replace that destroyed in the fire.

This led to all work on the factory stopping in October 2006, and the company put the building up for sale in April 2007.