Dara Brennan, it was claimed, suffered an injury to his face after he was delivered by forceps at the Dublin hospital.
He now has scarring on his cheek and two indentations on the right side of his face which are obvious when he smiles, the court heard.
Through his mother Lorraine Brennan, of Brayton Park, Kilcock, Co Kildare, he had sued the Coombe Women and Infants University Hospital over the circumstances of his birth on November 12, 2009.
Dara suffered severe personal injury to the right side of his face caused by the alleged improper use of forceps around the time of his delivery, it was claimed.
There was a failure to exercise the care, competence, judgment and skill to be expected in the management of the labour and delivery, it was alleged.
It was further claimed there was a failure to summon a more senior doctor in obstetrics, despite the size and position of the baby.
The claims were denied.
Richard Kean SC, for Dara, told the court liability was fully contested in the case and there was a conflict between the medical experts on the different sides.
Counsel said Dara was a brave little fellow and makes no bones about the matter.
His parents were also happy with the settlement. Approving the settlement Mr Justice Kevin Cross said the settlement was as near to full compensation as he was going to get.