The Corporation of Hamilton has paid $70,000 to a consultant to settle a breach of contract lawsuit before it gets to court.

Accountant Mike Hardy, of Noa Ltd., told The Royal Gazette yesterday he felt vindicated by the payment and accused the municipality of dragging its heels over settling the civil dispute.

"I'm glad it's all over," he said. "It could have been resolved much earlier. They just held on and held on to inconvenience me."

Mr. Hardy issued a writ against City Hall last November after elected Corporation members decided a contract he had to find cheaper deals for the City was not valid because only the Mayor had approved it.

This newspaper revealed in August how the row was one of several fuelled by bitter internal divisions between Mayor Sutherland Madeiros and members.

Mr. Madeiros said last night he knew nothing of the $70,000 payment to Mr. Hardy. "I'm shocked that you know what the settlement is and I don't," he said.

He added that he would like to comment further at a later date. "I think that the whole thing was handled poorly. I would like to put my side of things to the public so people know what took place. I think it should be balanced."

Mr. Hardy said in August that he had never been so badly treated in his 30-year career and had never had to go to court to get fees from a client before.

He told this newspaper that the contract came about after conversations between him and Mr. Madeiros, a friend whom he met for weekly lunches, about how to save taxpayers' money in the City.

An agreement was drawn up, after consultation with then-Corporation treasurer Geoffrey Bell, which would have given Mr. Hardy 50 percent of any savings he made the Corporation over an 18-month period.

But after he negotiated a cheaper deal on health insurance for the municipality, saving $200,000 according to Mr. Hardy, the Mayor told him members had taken issue with the contract.

"He said he'd deal with it internally," said Mr. Hardy. "He sent me an e-mail saying suspend work and make a claim. I had to put in a writ then."

He added: "If the councillors had a problem with this why didn't they discuss it with me? Normally, if you have a problem with a contract you negotiate."

Mr. Hardy said yesterday he hoped publicity about the case had not damaged his reputation. He added: "I feel sorry for the Mayor for what he's had to be put through."

Corporation Secretary Ed Benevides said on Friday: "I can confirm that the Corporation of Hamilton has resolved the outstanding dispute with Mr. Hardy. I am not prepared to discuss the specifics of the settlement but both parties are satisfied with the resolution of this matter."