OLD ORCHARD BEACH — An out-of-court settlement has been made in a lawsuit between former Town Manager Mark Pearson and the town, but details are not being disclosed.

Pearson sued the town in April of 2013, following his termination from the job.

Pearson’s lawyer, John Richardson, said in the lawsuit the town breached the employment contract and violated the town charter, state law, and the Maine and U.S. Constitution by terminating Pearson’s employment without cause and by not following due process requirements.

In the lawsuit, Pearson asked the town to reinstate his position as town manager and award him damages, costs and attorney’s fees, the lawsuit states.

On Tuesday night, at a special town council meeting, councilors voted to give final approval to an agreement made a few weeks ago at a mediation session between Pearson and town officials.

Councilor Bob Quinn, who attended the meditation session, said the terms of the agreement are confidential.

“Therefore, the members of the town council and the town manager are not at liberty to discuss the terms of the agreement in any further detail at this time,” he said.

Community member John Bird, who regularly attends and speaks out at town meetings, said though he didn’t know the details of the agreement, he is concerned the settlement would not resolve any issues and the town would just be “sweeping it under the rug.”

Pearson’s termination came in the midst of a tumultuous time for the town, and preceded a recall movement that unseated six of the seven town councilors.

“What I will say is ”¦ that litigation is costly, having a new town manager is priceless,” said Laura Bolduc, a former town councilor, who had voted to terminate Pearson.

Town Councilor Malorie Pastor said the agreement saves the town money and does what’s best for the town.

“This really puts this to rest,” she said.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.