The family of a woman who died in hospital after delivering a stillborn baby has won £300,000 in an out-of-court settlement after fighting for five years to force Swansea NHS Trust to admit liability for the death.

Diane Price, 24, of Port Talbot, south Wales, who had two children, was rushed to hospital after being found collapsed in a pool of blood at her home in July 2001. Doctors at Singleton Hospital, Swansea, told the eight-and-a-half-months pregnant mother that her baby was dead.

She opted to continue with a natural birth, backed by doctors, even though she needed a transfusion. Hours later she was taken to theatre after collapsing and went on to lose three litres of blood, causing a fatal heart attack.

An inquest in Swansea recorded a verdict of natural causes two years ago.

Ms Price's mother, Jackie Harris, and her partner, Craig Richards, sued the trust on behalf of Ms Price's children, who are now aged 10 and six.

Swansea NHS Trust apologised to the family yesterday for the "insufficient co-operation and communication" between staff that led to the death. Mrs Harris said: "Why could they not have [apologised] earlier, instead of prolonging the torment for my family?"