A legal action by a distributor of foods for the animal industry against a grain supply company over ground nut allegedly contaminated with morphine has been settled.

William Connolly and Sons, trading as Connolly's Red Mills, Goresbridge, Co Kilkenny, had sued Dublin based importer of bulk materials used for animal feeds, Torc Grain and Feed Ltd.

Connolly’s Red Mills claimed some 29,000 tonnes of ground nut provided to them by Torc in 2002 contained significant quantities of morphine.

Connolly’s used the nut for the production of horse feed which it then sold to the industry.

Prize money lost

The company claimed a number of racehorses subsequently tested positive for the banned morphine substance during November and December 2002 and that horses were disqualified and prize money lost. The product was later recalled.

Connolly’s sued for alleged breach of contract and severe loss against Torc, which denied the claims.

The case opened before Mr Justice Robert Eagar who was told, following talks this week, the matter had been settled and could be struck out.