Worcestershire Royal Hospital has admitted liability in the case of an 11-year-old boy with cerebral palsy whose condition was caused by complications at his birth.
Daniel Spencer was born in 2001. His mother suffered a placental abruption during the delivery, depriving him of Oxygen and causing damage to his brain.
The dispute has centred around how long it should have taken to make the decision to deliver Daniel after the complications were fully understood. The average time is 15 minutes. One expert said he would have taken it in six. In Daniel's case it took 33 minutes.
The hospital and the family have agreed that a figure of 75 per cent of the full liability is reasonable, avoiding the need for a trial that was scheduled for May.
Lawyers for both parties will now consult to decide how much the claim is worth, but the settlement is likely to run into millions.