Other party sent claim for damages to my insurance company. As the amount of damages claimed by other party was too high (£5k

Issue here is... as I was the person involved in the accident other party involved me in the court proceedings (though I was fully indemnified by my insurance company for any liabilities resulting from this accident) and my name was mentioned in county court proceedings and judgement.
I have recently consulted my insurance company and solicitor who represented me in the this issue, they both advised me that there was no trail involved as I was not disputing the liability rather both parties (my insurance company and other party) approached court to assess damages. Its a mere paper claim and civil. Also I have not incurred a 'penny from my pocket' from whole of the issue, as I was covered by insurance.
Will this impact my ILR application in August 2013 ? Both my insurance company and solicitor agreed to issue a letter to confirm above facts, will that help.
Senior member and moderators, your advise is much appreciated. Any one in forum had similar situation ? what was your experience?