Rosie O'Donnell's 'Friendly' Ex Michelle Reunites With Daughter Dakota

After finally settling their nasty custody battle, Rosie O'Donnell's former flame has an amicable exchange of the couple's daughter Dakota. See photos of their reunited afternoon!

The talk show queen, according to the NY Post, told reporters following the hearing at Manhattan Supreme Court: "We're both very happy about the outcome … there's peace in the Middle East — it's done, we've settled."

Peace indeed! The two mothers proved their amicability, meeting up to exchange daughter Dakota.

Rounds said she felt "great" after the former couple spent three hours working out the deal, the result of which leaves both with "joint legal custody" of the 2-year-old they adopted together, according to her attorney, William London.

It's a welcome development for both parties, after Rounds was taken to the hospital in a suicide scare last month, while O'Donnell has been dealing with a public falling-out with her estranged daughter Chelsea.

A separate source told the paper of the split: "Chelsea had been going to a special school. But she refused to go back and wanted to stay home and go to school here. Rosie had to make a decision."

Meanwhile, the comedienne has reportedly been sued for slander by a former producer on The View.

Jennifer Shepard-Brookman spent nearly 15 years as a producer on the show, but she alleges that she lost her job after Rosie O'Donnell slandered her name—and she's got a lawsuit to back it up!

In response to the suit, O'Donnell's attorney Nicolle Jacoby said, "The allegations that have been made by Jennifer Brookman against Rosie O'Donnell are baseless and Ms. O'Donnell will defend herself vigorously in court."