France's richest woman and her daughter have resolved a protracted legal dispute over more than euro1 billion ($1.3 billion) that swelled into a national scandal and raised questions about the future of the family fortune, the daughter's lawyer said Monday.

"There is no more case as far as we are concerned," lawyer Olivier Metzner told The Associated Press.

L'Oreal cosmetics heiress Liliane Bettencourt, 88, and her daughter Francoise Bettencourt Meyers have met after a long estrangement, Metzner said, adding, "We are bringing an end to all procedures given this familial reunion."

The daughter has publicly accused photographer Francois-Marie Banier of abusing her mother's alleged mental fraility and abusing her trust to bilk Liliane Bettencourt out of euro1 billion ($1.3 billion) in cash, artworks and other gifts. Banier, a longtime friend of Bettencourt's, has insisted he did not take advantage of her.

Metzner said the photographer "has renounced many of the benefits he received. And we are renouncing any procedure regarding him."

Metzner provided no details about the unexpected resolution of a case that dominated headlines for several weeks earlier this year — and even embroiled President Nicolas Sarkozy and his government.

The feud erupted into a political affair over leaks by former Bettencourt employees about the family's fortune, and led to claims of tax evasion and illegal financing of Sarkozy's conservative party.

Police questioned the former treasurer of Sarkozy's UMP party — then-Labor Minister Eric Woerth — in July amid allegations that he received funds from Bettencourt to illegally finance Sarkozy's election campaign.

Woerth denied the allegations. Sarkozy called the claims a smear campaign.

As the mother-daughter dispute escalated, Bettencourt raised questions about the future of the company when her daughter inherits L'Oreal, the world's biggest cosmetics company.

Francoise Bettencourt Meyers, meanwhile, had sought to have her mother declared mentally incompetent. Last month, a judge ordered Liliane Bettencourt to undergo examination by three doctors meant to determine her mental and physical health as part of the legal case.

It was unclear whether there will still be a trial involving Banier. Lawyers for Bettencourt and Banier did not immediately respond to calls about the dispute Monday.

Bettencourt, Europe's richest woman according to Forbes, has a fortune estimated at $20 billion (euro15 billion), and is one of France's biggest taxpayers.

(Published by Fox News - December 6, 2010)