The negligent treatment given by a doctor has resulted in a payout which could run into millions of pounds, reports suggest.
According to the Associated Press, Oscar Riches suffered severe brain damage at birth because a locum doctor failed to perform an emergency Caesarian section in time.
As a consequence, Oscar Riches was born with cerebral palsy, a condition which affects movement and coordination.
The youngster, who was born at Eastbourne District General Hospital in December 2001, requires constant care and will do for the rest of his life.
East Sussex Hospitals NHS Trust admitted liability because of the behaviour of the locum obstetric registrar, who was said to have "grossly mismanaged" Oscar's birth.
The trust's legal representative apologised on its behalf and said that he hoped that the settlement would relieve some of the burden experienced by the family.
Approving the settlement, the judge commented: "It seems to me that not every parent could have borne the strain and not every marriage could have survived it."