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After the case against him collapsed, Norman told journalists he believed that “for me and for the Canadian Armed Forces the best choice would be for me to go back into my former position.”

Vance, too, issued a statement saying he looked “forward to welcoming (Norman) back to work as soon as possible.”

In May, the two met to discuss next steps. Mediation sessions between Norman and federal lawyers took place during the last two weeks of June. The result sees Norman retiring rather than returning to his previous post.

No date has yet been set for Norman’s retirement, DND said.

After initially declining to pay Norman’s legal fees, the federal government announced after the staying of the charge that it would cover the costs, which are estimated to be more than $1 million.

Norman appeared in uniform in Halifax on June 12 for a ceremony that saw Vice-Admiral Art McDonald assume command of the Royal Canadian Navy. To applause from the crowd, Vance acknowledged Norman in his remarks. “Great to have you here mate,” Vance said to Norman. “The family’s all together again. It feels good.”

Though Norman had said he wanted to return to his job, it is currently held by Lt.-Gen. Paul Wynnyk, who would have had to be removed from the position of vice-chief. Some of Norman’s supporters have also pointed out the senior naval officer would have been returning to what could be a less-than-welcoming environment.

Prime Minister Justin Trudeau had predicted on two occasions that Norman would end up in court, even though at the time no charges had been brought against the officer. A letter from Vance about Norman’s removal — sent only to the most senior staff — was leaked to the news media by someone inside National Defence headquarters within 20 minutes of being distributed. During Norman’s pre-trial hearing, a military witness recounted how a brigadier-general hadf boasted about attempts within the Canadian Forces to stop Norman from receiving the documents he needed for his legal defence. The judge in Norman’s pre-trial hearing was so concerned that the military member who came forward with this information would face retribution from the Canadian Forces leadership that she imposed a publication ban on the individual’s name.

Top DND leadership was also closely involved in the case. Vance held meetings with the RCMP, and later with top Liberal government advisors and with Trudeau himself. Deputy minister Jody Thomas also participated in meetings with police.

Before the settlement was announced, sources close to Norman told Postmedia that efforts were underway on a potential lawsuit against the federal government. It is not known whether that lawsuit will still proceed now that a settlement has been reached.

• Email: dpugliese@postmedia.com | Twitter: davidpugliese