Defence advocate Barry Smith KC said the first priority of a nursery was the safety and wellbeing of the children there.
He added: “It is of the utmost regret from all involved – from the director and all staff – that this accident occurred and injury was caused to a young child.”
In a statement released via law firm Digby Brown, the family said: “We’ve had to wait five years for Little Dreams Nursery to admit what happened to our son was their fault but we don’t feel the severity of his injuries have been acknowledged.
“We trusted them to take care of him and for such an injury to happen to a 10-month-old baby is indefensible.
“In the months and years that followed, we had to watch our boy deal with the consequences of something that was never his fault. No parent should have to experience that, but we are thankful what happened hasn’t had a more serious or longer-lasting impact.”
The statement concluded: “Today we close the most horrific chapter of our lives and we want to thank everyone who has supported us during this time and now request our privacy as we move forward.”
Little Dreams said the safety, wellbeing and care of every child entrusted to them was of the “highest priority”.
“We deeply regret that this incident was able to occur and are profoundly sorry for the distress and impact it has had on the child and their family,” the nursery said.