The High Court in Belfast
John Toland and James Loughrey were shot in separate incidents in the villages of Eglinton and nearby Greysteel in 1976.
Their families have claimed there was security force collusion in the killings and sued the MoD and Police Service PSNI.
Today, Monday, February 26, the MoD and PSNI settled the cases with no admission of liability.
While the amount of the financial settlements have not been disclosed, a solicitor for the families described it as “significant”.
Members of both families were at Belfast High Court today, including the two widows, Mary Loughrey and Marie Newton.
A barrister for the Toland and Loughrey families told Mr Justice Humphreys that both actions had been settled.
Mr Justice Humphreys said: “I observe the presence of families in court and I congratulate you on reaching a settlement.”
He said such cases were always difficult and emotional.
The judge added: “For both sides it represents an achievement to be noted, you have brought finality to a lengthy and difficult process.”
Speaking outside court, Padraig O’Muirigh, solicitor for the two families, said: “As a result of negotiations over the last number of weeks, these legal actions have now been settled.
“The confidential nature of the settlement prevents me from disclosing the settlement figure, I can confirm though that the figure is significant.
“It is crucial that cases of this nature are allowed to progress through the inquest and civil proceedings unhindered by the NI Troubles, Legacy and Reconciliation Act.
“Unfortunately, many families will be deprived of the opportunity to pursue their own legal actions by the draconian legislation.”
John Toland was working as a barman in the Happy Landing pub in Eglinton when he was shot by the UDA in November 1976.
James Loughrey was shot dead in nearby Greysteel later the the same month by the UDA.
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