By the time she had another smear test in 2014 she had cervical cancer.
Ms Phelan, of Carrigeen, Annacotty, Co Limerick alongside her better half Jim Phelan has sued the Health Service Executive and Clinical Pathology Laboratories Inc, Austin, Texas, over a spread test taken under the National Cervical Screening Program CervicalCheck and dissected in the United States research facility.
Mrs Phelan, who now has cervical cancer and has been told she only has months to live, was not told about the misdiagnosis until 2017, despite CervicalCheck becoming aware of the misdiagnosis three years earlier in 2014, according to an audit.
The Health Minister continued: 'If Vicky Phelan hadn't done what Vicky Phelan has done we wouldn't know and I wouldn't know what we now know'.
Earlier on Saturday, Mr Harris's Department of Health confirmed that it had advised CervicalCheck to arrange for additional smear tests for women whose Global Positioning System say they need them - at the cost of the State.
This morning the court was told the case had now settled and the case against the HSE could be struck out with no order.
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The court heard that regardless of her terminal finding Ms Phelan is attempting another treatment in the US.
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It said cervical screening cannot prevent all cancers and while regular screening can detect pre-cancerous changes early, "however screening tests are not diagnostic in nature and cannot always indicate the presence or absence of pre-cancerous changes".
Ms Phelan settled a case against a United States lab on Wednesday, after being wrongly informed in 2011 that she had the all clear.
The HSE has confirmed that 1,482 cases of cervical cancer were notified to Cervical Check since it started the national programme 10 years ago.
"Despite these achievements, every diagnosis of cervical cancer is one too many and we acknowledge the impact of this disease on women and their families".
"It has helped reduce the cervical cancer rate nationally at a rate of 7% per year".
The HSE said it wished to acknowledge Professor Flannelly and to formally thank her for "the enormous dedication, contribution and expert knowledge" that she brought to the CervicalCheck Programme over the past 12 years.