A taxi driver who received devastating head injuries when his car struck a runaway horse has won a £1.25m compensation pay-out.

Khalid Mahmood, 27, of Fergusson Road, Banbury, suffered what were described as 'catastrophic brain injuries', following the accident in September 2004, as he drove on the B4100 between Banbury and Bicester.

Counsel Nigel Cooksley QC said Mr Mahmood had undergone a pronounced personality change due to his injuries.

He lost control of his car when the horse, Tansy, ran into the road, colliding with his vehicle. The car went on to hit a wall and a tree.

The court heard that Mr Mahmood was in a coma for three weeks after the crash, and suffered eight weeks' post traumatic amnesia.

His injuries have left him with reduced memory and visual problems.

He sued Daniel and Judith Kleinman, of Caversfield House, Caversfield, near Bicester, who kept Tansy on their land, as well as the horse's owner, Patricia Simonon.

In the High Court in London yesterday, Judge David Mitchell approved the £1.25m settlement in favour of Mr Mahmood, saying the pay-out was "entirely appropriate".