Mr Salter has won an undisclosed sum of money
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A Labour MP has accepted undisclosed damages for libel over a press release which claimed he intimidated and bullied local councillors.
Reading West's Martin Salter brought proceedings against Tory co-chairman Liam Fox and Conservative hopefuls Robert Winston and Ewan Cameron.
The High Court heard the claim arose from a news conference held by Reading East Tories before the 2004 Euro poll.
Dr Fox, Mr Winston and Mr Cameron accepted the allegations were untrue.
Mr Salter pronounced himself "delighted" with the settlement but argued the action should not have been necessary if the Tories had checked their facts.
"I can only conclude that they were more interested in trying to smear my reputation and question my integrity in order to gain some party political advantage ahead of last year's elections," he said in a statement.
"I gave them every chance to withdraw and I am surprised that they did not do so and refused to apologise to me for so long after publication."
Apologised
Mr Salter's solicitor said the press release was based on allegations in a letter from deselected Labour MP Jane Griffiths.
Tamsin Allen told the court that allegations of serious misconduct made were that he had improperly interfered in a planning application and had behaved in a bullying and intimidatory way towards councillors.
She added that a day after the press release was published the council issued a public statement which confirmed there was no evidence for the claims but a formal complaint was subsequently made to the Parliamentary Commissioner for Standards, Sir Philip Mawer.
He instigated an investigation but rejected the complaint against Mr Salter in December 2004 saying the allegations were "plainly unsubstantiated".
Ms Allen said the three Conservatives had apologised for publishing the press release and agreed to pay Mr Salter damages and his legal costs.