Flatley settles with ex-manager out of court

His legs were once insured for £25 million

His legs were once insured for £25 million. He dazzled audiences who came to see Riverdance and Lord of the Dance with 28 taps every second.

But after reaching an out-of-court settlement with his former manager in London yesterday, who had sued him for an estimated £10 million for breach of contract, Michael Flatley is now facing a bill for legal costs estimated at £1 million.

The undisclosed "substantial" sum which the dancer will pay to Mr John Reid will no doubt put a large dent in his pocket, but Mr Flatley put a characteristically brave face on the decision, saying he was "extremely delighted with the outcome of the action".

For someone with a personal fortune of about £60 million, it may seem like a small price to pay to extricate himself from his management contract with Mr Reid, which Mr Flatley's counsel in the High Court described as "manifestly disadvantageous". But in the end the dancer's case was flimsy and ultimately costly.

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The terms of the settlement were not announced in Court 60 yesterday, and neither Mr Flatley nor Mr Reid was present when Mr Gordon Pollock QC, for Mr Flatley, informed Mr Justice Lightman that both parties had reached an agreement that was satisfactory to all concerned.

Mr Reid had sued the dancer for an estimated £10 million damages, claiming compensation for the repudiation of his contract just as the Lord of the Dance extravaganza took off in London two years ago. Mr Flatley counter-sued for deceit.

A claim of professional negligence against Mr Flatley's former solicitors, Clintons, was also dismissed and he has agreed to pay their costs.

A spokesman for Clintons said the firm was pleased the case against it had been shown to be groundless and its reputation had been vindicated. "It is a matter of regret that this unjustified action was ever started; Clintons and their legal advisers have always considered that it was bound to fail."

After the announcement Mr Reid, who once managed Elton John, welcomed the end of the case, saying it was a "real shame" that the proceedings had gone so far.

In a statement he said: "Naturally I am delighted to put this behind me. It is a real shame that so much time and money and effort has been wasted in the process of getting to the point which we could have reached two years ago."

Mr Flatley, who treated waiting reporters to an impromptu warm-up session outside the court on the eighth day of the proceedings, declined to make a snap statement and it was left to his counsel, Mr Pollock, to tell the court that the dispute had been disposed of "on agreed terms".

During the proceedings, attended in the first few days by a small group of Mr Flatley's fans, he had claimed that Mr Reid had not had enough time or interest in his career and had been "completely taken up" with Elton John's affairs. He had been unduly influenced to sign the management contract with Mr Reid after meeting him in St Tropez in 1995 and he wanted his manager to help him to achieve his ambition of starring in a major film and dancing at the Oscars award ceremony.

Their relationship had turned sour, according to Mr Flatley, after Mr Reid allegedly became abusive during a confrontation in the dancer's dressing room on the opening night of Lord of the Dance at Wembley Arena in January 1997.

After accepting a gift of two glass unicorns from Mr Reid, Mr Flatley claimed, his manager swore at him and threw faxes around the room and then left with a slam of the door.

Mr Flatley was so upset by the incident he vomited after Mr Reid left the room.

It may have been the most colourful incident described in court, but it is Mr Flatley who has been left to pick up the bill.