The B.C. Court of Appeal has approved a settlement in which a North Vancouver couple agreed to abandon an appeal in a medical malpractice suit in exchange for being excused from paying the costs of the original trial.

Catherine and Daniel Lotocky filed a damage suit after their son Michael suffered brain injuries shortly before his birth in 2006, but the trial judge ruled they'd failed to prove liability and awarded legal costs to the doctors and nurses involved.

When the couple decided to appeal, the defendants offered to waive the legal fees of more than $200,000 if the appeal was dropped, and the family agreed.

But B.C.'s Public Guardian opposed the deal, arguing it was in the best interests of the child to pursue the appeal.

The Guardian offered to take on the appeal and pay the related court costs, but not to cover any liability for the parents if the appeal failed.

The court of appeal has now approved the agreement to dismissal the appeal, saying the grounds were not strong, and if forced to pay the legal bill the family could have risked losing their home, which would could hurt the child involved.