The city of Biddeford has reached a settlement in its dispute with former City Manager James “Jim” Bennett.

According to a press release from Danica Lamontagne, assistant to the city manager, the city and Bennett are “pleased to announce” they have “come to a mutual resolution over Bennett’s separation from the city.”

“This allows both sides to move forward,” the press release said. “The litigation was a contract dispute and did not involve the performance of the former city manager.”

Bennett, who served as Biddeford city manager for 10 years, filed a lawsuit against the city in June, claiming the city owed him more than $200,000 in wages and other compensation, as outlined in his contract.

The city denied the claim, asking the court to dismiss the complaint brought by Bennett.

The city said the claim was not valid because Bennett had committed a breach of contract, including by engaging in “misconduct or wrongdoing” in terms of his employment contract.

Bennett announced his phased retirement in October 2024, and was slated to officially leave office on April 18.

In March, the city announced that Bennett was placed on paid administrative leave, though it did not disclose the reason behind the decision. Biddeford Chief Operating Officer Brian Phinney was appointed acting city manager, and Truc Dever was appointed city manager in June.

According to the documents detailing Bennett’s complaint, upon the termination of Bennett’s employment, the city was to pay Bennett as if he had been terminated without cause.

This means that Bennett was entitled to receive 12 months aggregate salary, any accrued and unpaid retirement benefits to Aug. 18, 2025, health insurance coverage for one year, and all other economic benefits he was entitled to under the employment agreement for a period of six months.

Bennett claimed that because he fulfilled all of his contractual obligations to the city, he was entitled to all of these benefits, which add up to more than $200,000 in wages.

“Per the agreement, the city is paying me a full year, plus all of the normal financial aspects,” Bennett said in the documents.

At the time, the city of Biddeford said it could not comment on the claim.

In the city’s press release early this week, the terms of the agreement between Bennett and the city were not clear, but it was noted that the settlement it would become public in the near future.