Communications consultant Monica Leech has claimed in the High Court she was defamed by the Evening Herald during its 2004 coverage of her work as special advisor to then Environment Minister Martin Cullen.
She claims the Herald published articles in November and December 2004 in which it falsely claimed she got Government public relations contracts because she was having an affair with the Minister.
Ms Leech, 49, of Otteran Place, South Parade in Waterford, has brought libel proceedings against Independent Newspapers Ltd - which denies the claims.
The case opened today before Mr Justice Eamon de Valera and a jury of five men and seven women. It is expected to last three weeks.
In her statement of claim Ms Leech says that she was employed to act as a consultant to the Department of Environment and Local Government in 2002, initially on €650 per day contract and in 2003, at €800 per day.
Her work involved promoting various projects which Mr Cullen's department was responsible for.
She claims the Herald libelled her by claiming she was being paid €1,200 per day which, the paper said, was more than was provided for under the terms of her engagement by the Department.
Ms Leech, who is married, also claims that later articles falsely stated she had been engaged by the Department because she was having an extra-marital affair with Mr Cullen.
She also claims that one of the articles claimed she was hiding the truth about having an extra-marital affair.
The Independent says the material published was true in substance and in fact in its natural and ordinary meanings and not those meanings contended by Ms Leech.
It claims there were legitimate questions as to whether the process by which her appointment as consultant was made had complied with best standards and whether her work represented value for taxpayers' money.
There were also legitimate questions as to the necessity and usefulness of the work Ms Leech carried out, the newspaper group says.
Independent Newspapers also says there were legitimate questions as to whether he appointment as adviser in July 2002 was influenced by her connections with Minister Cullen.
It says there had been suggestions to the effect that she and Mr Cullen were conducting an affair and that the Minister had denied these suggestions.