Ledger And Williams' Daughter Granted Privacy

The Los Angeles official reacted as lawyers for the three-year-old's trust and ReliaStar Life Insurance Company announced in court they had reached an agreement to settle a $10 million (£6.9 million) lawsuit.

It involved a life insurance policy Ledger took out seven months before his death from an accidental prescription drug overdose last year (Jan08).

An attorney for the tragic star sued the company, claiming the firm's bosses refused to pay out pending an investigation on whether his death was a suicide.

Superior Court Judge Luis A. Lavin has ruled that because The Dark Knight star's daughter is the benefactor of the policy, the details of the settlement - including the amount Matilda will receive - should be kept private.

Judge Lavin told the court, "She is not a celebrity. She is a minor child."

He also noted that while Ledger was famous, Matilda had "a right to privacy".

Lawyer for ReliaStar, Margaret Levy, said the company was pleased the case was settled "amicably" and Matilda would be shielded from public scrutiny: "We think that's great that she will be protected."