The lawsuit "Smith v. the Irish Farmers Association" was lodged with the Irish Courts Service on Friday 11 December.

The Irish Farmers Journal understands the legal action relates to the payment of Smith's controversial €2m severance package.

The €2m package includes a €1m lump-sum up front and €100,000 a year for 10 years. The revelation that former president Eddie Downey had signed off on it led to his own resignation.

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In a statement last month, Smith said the package represented approximately six weeks redundancy pay for each year worked for the association and fulfilled legal commitments he and other staff have in relation to pension shortfalls. He went on to say that he had no intention of "getting into a brawl" with the IFA and asked the organisation to pay the €1m lump sum to charities.

The IFA replied at the time that the suggestion was "total spin" and reported that its executive council had "rightly disowned this package".

A spokesman for the IFA declined to comment when contacted about this latest development.

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