Payers of the council tax in a small village will pick up the bill for a row between a parish council and its clerk.
Up to one-third of the council's annual budget will be spent on legal fees after it was almost sued by its former clerk.
Lothersdale Parish Council, near Keighley, will pay out up to £2,500 in lawyer's fees after its clerk of four years Stephen Cohen filed a case with Leeds Employment Tribunal.
Mr Cohen requested an apology from the council and compensation of £17,000 after he claimed the council failed to follow procedures and denied him a grievance hearing.
He also threatened the action after he said statements had been made about him at a council meeting.
The action was withdrawn after a statement was agreed between the two parties. No payments have been made. The move comes after relations between the two broke down earlier this year after a series of disagreements.
But Mr Cohen claimed the bad feeling was down to his decision to stand for the parish council in May's local elections.
An emergency meeting was then called by the council regarding Mr Cohen's position and conduct. This was advertised and, according to Mr Cohen, "caused widespread interest throughout the village".
He said: "I was extremely angry. More importantly I didn't know what it was I was supposed to have done and I didn't find out until I got all the documents for the tribunal."
At a council meeting, members discussed disciplinary action against Mr Cohen. He requested councillors follow procedures and to allow a grievance hearing within 28 days.
This was not done and, despite a mediator being brought in, Mr Cohen submitted a claim to the employment tribunal and resigned as clerk on May 11.
He said: "I think this all came about because I decided to stand for election, that's the upshot of it all."
Chairman of Lothersdale Parish Council Andrew Wheatstone said: "Throughout the last six months the council has repeatedly asked questions about matters which are legitimate to public concern.
"The council is a public body, but also an employer and an organisation involved in an ongoing legal dispute, and therefore has been unable to answer these questions until now."
The council has apologised to Mr Cohen regarding the council meeting which reviewed his position and conduct.
Both parties now hope "the gossip, speculation and misinformation that have been circulating around the village will now come to an end."
e-mail: newsdesk@bradford.newsquest.co.uk
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