A SUBSTANTIAL payment has been made by Kirklees Council to settle a dispute over King James's School at Almondbury.
And there are reports that the payout could be as much as £800,000 - which would come out of council funds.
Lawyers acting for both the council and the trust which looks after the historic school have reached agreement after talks.
But neither side was prepared to go into details about the settlement.
The news follows the serving of a writ in the High Court in Manchester by the trustees of the King James's Foundation Trust.
The writ sought compensation from the council over alleged mismanagement of the Trust, which was originally set up in 1920.
Mr Robin Barraclough, who acted for the Trust, issued a statement.
It said: "Following independent mediation a High Court action brought by the Trustees of the King James's Foundation Trust, supported by the Old Almondburians Society, against Kirklees Metropolitan Council has been settled upon payment by the council of a substantial sum to the Trustees.
"Both parties have agreed that the precise terms of the settlement shall be subject to a confidentiality agreement."
The Trust was set up to provide for the education of students at the then Almondbury Grammar School, later King James's.
The Trust owns a large number of properties in Almondbury and other parts of Huddersfield.
The running of the Trust was handed over to Huddersfield Borough Council in the 1940s and to Kirklees Council in the early 1970s.
