Central Alabama Water has rehired an attorney its new board fired soon after taking office in June as part of a legal settlement.

The settlement between Mark Parnell and CAW entails honoring a three-year consulting contract and additional payments to Parnell totaling $2.4 million.

“CAW has determined that it is in the best interest of the board and ratepayers to reach an amicable settlement with Parnell and resolve the issues between the parties,” reads a resolution CAW’s board of directors voted 6-1 to approve Monday evening during a special called meeting.

Board member Sheila Tyson cast the lone “no” vote after the board returned from an executive session of about 35 minutes that was closed to the public and involved discussion of pending litigation.

Parnell had served as an external attorney for the water works for 37 years when the previous board voted to hire him as internal general counsel at its last meeting before a state law effectively dissolved that board and required installation of a new one.

The employment contract included a salary of $660,000 per year plus substantial benefits. A clause in the agreement required payment of the full amount left in the contract if the new board were to terminate Parnell’s employment, which it did on June 2 following public outcry about the cost and timing of the contract.

Parnell filed a lawsuit against the utility for his termination and, through his attorney, threatened additional legal actions for allegations of slander surrounding comments a new board member made regarding the firing.

A joint statement CAW released Monday night from attorneys for Parnell and the water works reports that the Alabama Attorney General’s Office indicated the previous board had authority to enter into the contract with Parnell.

“CAW values Parnell’s past professionalism, ethics, contribution and service to CAW,” the statement reads. “It is regrettable that this dispute has given the public the wrong impression that Parnell acted inappropriately or unethically.”