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But Anticor persisted with the case.
The anticorruption group Anticor, a plaintiff in the case, asked the judge to appoint a neutral expert to examine the issue.
"They don't want a former president to be on trial," Anticor lawyer Jerome Karsenti.
International Training and Research Center "Anticor"
Jérôme Karsenti, lawyer for the anti-corruption lobby group Anticor, said the decision to refer the trial was “a denial of justice”.
Anticor's lawyer Jerome Karsenty branded Veil's move a "manipulation".
“They don’t want to judge a former president and we can easily see the political stakes behind this,” said Jérome Karsenti, a lawyer for Anticor.
Private plaintiffs from the anti-corruption group Anticor said the move was a blatant attempt to stifle the case against Mr Chirac.
Jerome Karsenti, of the anti-corruption group Anticor, lauded the ruling as "a historic decision and extremely important for the future of democracy.
Chirac's lawyer Jean Veil asked the court for the trial to be put on hold pending the outcome of a separate judgment on Anticor's complaint.
"This is a true denial of justice," Jerome Karsenti, lawyer for one of these civil plaintiffs, anti-corruption group Anticor, told reporters outside the court.
An anti-corruption group, Anticor, has lodged a legal challenge against the out-of-court settlement, calling for it to be annulled and for the civil suit to go ahead.
Jerome Karsenti, a lawyer for the anti-corruption group Anticor, which had argued against Chirac as a civil party to the case, said the reverberations could be widespread.
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She received the Anticor ethics prize in January 2015 before being invited to testify by the "Tax Ruling" commission of the European Parliament in Brussels.
"It's really sad for France ... it demonstrates the sickness of French justice," Anticor attorney Jerome Karsenti told reporters this week after the dismissal request by prosecutors.
Anticor cited the example of a wife of an elected party official who was paid to provide "cultural advice" of which no trace remains and who never set foot in the town hall.
An anticor, also known as anticoeur or avant-cœur, among farriers, is a dangerous swelling or inflammation in a horse's breast, of the size and shape of an apple, just opposite the heart.
Jerome Karsenti, a lawyer for the anti-corruption group Anticor, urged an independent medical exam to make sure Chirac's alleged medical trouble is not just an "umpteenth delay" and an attempt at "running away."
French anti-corruption group Anticor argued in the Chirac trial that the alleged phantom jobs were just a small example of a system of corruption involving hundreds of beneficiaries intended to boost Chirac's political power as mayor.
“We’ve seen a strong message delivered today: politicians can no longer do as they please when in charge of public administrations,” said Jérôme Karsenti, a lawyer for the anticorruption group, Anticor, which became the prime plaintiff in the case.
Anticor, an anti-corruption advocacy group that is a civil party to the case, said President Nicolas Sarkozy's party - built upon the RPR's remains - doesn't want any dirty political laundry to come out in the proceedings.
Jérôme Karsenti a lawyer for anti-corruption group Anticor said: ‘‘Given that Jacques Chirac held multiple mandates at the time, he used Paris city hall as a promotion system, allowing him to run as a presidential candidate.’‘
But the anti-corruption group Anticor, one of the civil plaintiffs in the case, questioned the report requested by Mr Chirac's family, saying: "We have no way of knowing if this is not the umpteenth attempt to get out of the trial."
He has denied that he attempted to pad the town hall despite accusations from a French anti-corruption group, Anticor, that the 28 jobs at issue are just a small sampling of a much wider system put in place by Chirac to increase his political influence.
An anticor, also known as anticoeur or avant-cœur, among farriers, is a dangerous swelling or inflammation in a horse's breast, of the size and shape of an apple, just opposite the heart.