The city's insurance company has settled with a business owner who was pursuing a lawsuit for water damages sustained before a swale was constructed to alleviate the problems.

Mayor Emery Doughtie confirmed this evening the city will pay Nationwide Insurance owner Jack Boseman its deductible of $1,000 while its insurance company will pay the balance of $3,500.

Doughtie said settling the matter out of court saved the city considerable money.

Public Works Director Larry Chalker said the swale held during Hurricane Irene and also during the heavy rains and thunderstorms that occurred during the week of July 4.