Businessman Henry Talbot yesterday dropped his $80,000 compensation claim against the Bromby brothers on the closing day of their malicious prosecution case against him.

In 2004, Mr. Talbot accused the brothers competitive sailor Peter, 44, and John, 51 of assaulting him during a property dispute relating to Gilbert's Bay Beach in Somerset.

The pair took exception to the 79-year-old bulldozing rock formations at the beach, which is adjacent to both his and their homes. They admit confronting him armed with a pipe and a hoe-handle. However, they maintain their innocence over his claims that they threatened and physically assaulted him.

The brothers were convicted in Magistrates' Court in 2005 of assault and threatening words, but saw their names cleared the following year when they appealed to the Supreme Court.

This week, the brothers took action against Mr. Talbot in a civil case, claiming he told witnesses to give false evidence against them. They further allege that he only complained about them after the fact having not reported any assault on the day of the incident to "get back" at them over a newspaper article highlighting concerns that his construction project was destroying longtail nests.

The brothers are asking Chief Justice Richard Ground to order that Mr. Talbot, a construction and waste contractor, pay them $17,929 for lost earnings and legal fees. They are also claiming $30,000 for damage to their reputations.

On Wednesday, the case took a bizarre turn when Mr. Talbot told the judge he knew nothing about a rival compensation claim against the brothers filed in his name. Although court papers asked the pair to foot a $10,000 medical bill for stomach injuries allegedly sustained at their hands, $27,000 in lost wages and $43,000 for pain and suffering, Mr. Talbot said he wanted nothing of the sort, and didn't understand why his former lawyer Kenrick James began the action on his behalf.

Yesterday, his current lawyer Rick Woolridge told the Chief Justice the counterclaim has been dropped, although Mr. Talbot still contests the malicious prosecution case. Mr. Justice Ground responded by saying: "The fact that there was also a counterclaim which was led and put in documentation which Mr. Talbot then disclaimed may and I only say may have some bearing on issues of credibility."

Mr. Woolridge insisted his client did give a credible account of what happened at the beach. He pointed to a bruise on Mr. Talbot's stomach which the senior noticed 18 days after the incident as evidence that he was indeed assaulted and had valid reason to go to the Police.

However, the Bromby brothers' lawyer Richard Horseman asked the judge to find in their favour. He said the fact that Mr. Talbot made no allegation of assault when Police came to the scene, and only noticed the bruise more than two weeks later, "defies human nature, and I would say it's completely unbelievable".

Mr. Justice Ground will give his ruling at a later date.