"From the beginning all we wanted was that she took responsibility for her actions and it's taken five-and-a-half years to get to this point," Mrs Barlow said.
The Hamilton couple said the decision brought a sense of closure to their ordeal and they felt now their middle son could be at rest.
Ms Campbell, then a new graduate with seven months' experience and operating as a self-employed independent midwife under the name Jennifer Rowan, was found by the Health and Disability Commissioner to have made a catalogue of errors that contributed to the baby's death and Mrs Barlow's injuries.
They included that she failed to recognise the progress of labour was not normal, failed to convey the urgency of the situation to Waikato Hospital staff on transfer, failed with hospital staff to expedite delivery, and failed with hospital staff to review and properly interpret monitoring of the baby's heart rate.
Mrs Barlow was sent home from River Ridge birthing centre against her wishes and was later rushed to hospital where she suffered a ruptured uterus.
An emergency caesarean and hysterectomy was performed but Mrs Barlow suffered a heart attack on the operating table.
Coroner Gordon Matenga blamed Ms Campbell in part for baby Adam's death and she apologised to the family last year.
Now 37, Mrs Barlow said she cried when she heard the latest decision.
"We just wanted her to accept what she had done and I think we have achieved that now."
Mr Barlow said his son paid the ultimate price and it was good to receive recognition of that.
Ms Campbell underwent supervision for two years and extra training including a competence programme, and now practises without conditions as a hospital midwife at Counties Manukau District Health Board.
Her lawyer, Carla Humphrey, said Ms Campbell admitted her part in the tragedy years earlier and had done everything possible to be accountable.
"She has accepted responsibility for any failings in her care and what she could have done better years ago. This midwife has, in fact, engaged in every process very responsibly and willingly over the last six years as part of her accountability."
Midwifery Council chief executive Sharron Cole said Ms Campbell would not be practising if the council was not confident in her safety.
She said the Barlow case resulted in changes in midwifery training, including making the degree four years and mentoring compulsory.
NZ College of Midwives chief executive Karen Guilliland extended her sympathies to the family but said it was concerning that the coronial and HDC processes had taken so long.
Ms Campbell had now been held accountable in five different legal and professional forums.
How the case unfolded:
• October 2009: Baby Adam Barlow dies in a prolonged labour which almost kills his mother, Linda Barlow.
• December 2009: Robert and Linda Barlow complain to the Health and Disability Commissioner.
• February 2011: HDC puts investigation on hold while a coronial inquest is held.
• May 2012: Coroner blames in part inexperienced midwife and criticises midwifery system.
• June 2012: Barlows renew their complaint to HDC, investigation begins seven months later.
• February 2014: HDC says midwife made a catalogue of errors that contributed to Adam's death and Mrs Barlow's injuries, and refers case to Director of Proceedings who lays charges.
• March 2015: Health Practitioners Disciplinary Tribunal allows withdrawal of charges against midwife.
• April 2015: The Human Rights Review Tribunal releases decision showing Jennifer Campbell agrees her care breached Mrs Barlow's rights.
