Police Scotland settlement with former Rangers bosses over 'malicious' prosecution

David Whitehouse and Paul Clark pictured in May 2012

Former club bosses David Whitehouse and Paul Clark were subjected to criminal proceedings with others in the wake of Craig Whyte's purchase of Rangers from Sir David Murray for a £1 and its subsequent sale before a judge dismissed fraud charges.

The Lord Advocate has already admitted the prosecution was 'malicious' and had 'no basis'.

Mr Whitehouse, of Cheshire, brought a damages claim against the Lord Advocate James Wolffe QC and the former chief constable of Police Scotland, Phil Gormley, for £9million.Mr Clark, of Surrey, sued for £5m.

In August the total claim was said to have gone up to £21m.

Alistair Duncan QC for Police Scotland said: "They have come to a mutually satisfactory resolution of the dispute.

"I don't propose to say any more than that."

Roddy Dunlop QC for Mr Whitehouse said they were "significant and welcome developments".

He added: "At previous hearings there have been significant concessions by the Lord Advocate, which led to an acceptance of liability for the losses arising from the matters complained of both for Mr Clark and Mr Whitehouse.

"That left outstanding the involvement of the Chief Constable and I am pleased to say for Mr Whitehouse and also for Mr Clark, the claims have now been settled extra-judicially."

He said he was not in a position to invite Judge Lord Tyre to "dispose of the matter" formally, but he anticipated it would happen soon.

He said: "In any event, your lordship can proceed on the basis that the Chief Constable will play no more part in these proceedings.

"And in particular, the case against him will not require to be explored at proof."

The damages claim will continue against the Lord Advocate.

Last month Judge Lord Tyre ordered the payment of £350,000 to Mr Whitehouse and £250,000 to Mr Clark as an interim payment after Crown lawyers admitted much of the prosecution against them was "malicious" and conducted without "probable cause".

The civil claim continues at the Court of Session.