FAIRHOPE, Ala. — Last week, just before litigation was set to take off in a Bay Minette circuit court over a runway construction project at the Fairhope airport, the parties decided to settle the case.

“We have reached an agreement in principle that will resolve that case (in a way) that is favorable to the city,” said Jaime Betbeze, a private attorney with Hand Arendall, the firm representing the city of Fairhope, at the tail-end of Monday’s City Council meeting.

Betbeze explained that, on the morning of March 1, and prior to striking a jury in the lawsuit brought against the city by Irvington-based Esfeller Construction Co., the parties had settlement negotiations in court on that day, which resulted in the tentative settlement agreement.

The council met in executive session March 8 to discuss the proposed settlement, and afterward voted unanimously to authorize Mayor Tim Kant to settle the litigation up to a certain monetary amount.

That upper-limit figure was not disclosed, but Kant said once the case was settled, the terms of the agreement would be made public.

Bethany Bolger, a Montgomery attorney who represents the Alabama Press Association, said the state Open Meetings Act would require the disclosure of the terms of the actual agreement, but that discussion of proposed settlement information and strategy prior to an agreement need not be disclosed under the statute.

Esfeller Construction Co. is seeking more than $1 million for compensation related to work at the H.L. “Sonny” Callahan Airport based on weather conditions in addition to approximately $2 million already paid by the city, Betbeze said during an interview prior to the March 1 trial date.

“Of course, the city’s position is that the risk of adverse weather was under the contract and was a burden that the general contractor took,” he said at the time. “Therefore we have denied those claims.”

The general contractor is represented by Daphne attorney Lynn Perry, who could not be reached for comment by press time.

Circuit Judge James H. Reid was set to preside over the case.

In other business, the council:

•Amended the municipal budget for fiscal year ending Sept. 30 to reflect $976,990 in proposed budgets cuts recommended by the Kant administration during a Financial Advisory Committee meeting held prior to the March 8 council meeting. Those cuts were proposed following discussions during the past month between the administration, council members and FAC members, regarding a possible deficit situation at the end of the fiscal year.