SANDPOINT — A truce has been reached between Bonner County and the operators of a therapeutic boarding school for troubled youths formerly located in Cocolalla.

Family Solutions Network’s lawsuit against the county alleging malicious prosecution, negligence and civil rights violations is being dismissed, according to a joint press release issued on Friday.

The news release indicates Family Solutions is resolving its differences with the county diplomatically instead of legally.

The company sued the county last year over a March 2005 incident involving a student who fled the Turning Winds school shortly after his arrival. The 17-year-old teen from Walla Walla, Wash., was later found hitchhiking on U.S. Highway 95 by a school official, who took him to the Westmond Store.

The events which followed led to criminal charges against school operators that were ultimately abandoned, an attempted $8 million tort claim against the county and the lawsuit.

The school’s operators — John William Baisden Sr., John William Baisden Jr., and Carl Spencer Baisden — were accused of pummeling the teen during a struggle and charged with child endangerment at the misdemeanor level.

The Basidens disputed the allegations and said the teen went berserk, according to court documents. The teen allegedly began punching, kicking and trying to bite them, police reports said.

The criminal charges were later dropped. Records in the criminal cases indicated the state ceased prosecution due to concern that forcing the teen to testify would undo progress he had made since the episode. Plaintiffs’ attorneys suggested in civil suit filings that the matter was dropped because the state possessed a deeply flawed case.

The controversy and its attendant publicity factored into Family Solutions Network’s decision to relocate the school to Troy, Mont., where the company mounted its legal campaign to clear its name.

“From the very outset, this case was about righting a wrong and not about money,” Carl Baisden, a vice president at Family Solutions, said in a statement. “We wanted to send a message that we believe the matter wasn’t handled right and that reforms needed to be made. We believe we sent those messages and the county was responsive.”

In a phone interview, Carl Baisden said the joint news press release was an example of the county’s responsiveness and a product of the settlement. No cash changed hands via the settlement.

“We were sensitive to the fact that bringing this further would have really hurt the community and taxpayers,” Carl Baisden said.

He added that he’s glad the matter is over.

“We have a renewed confidence in the county and the sheriff’s department, and certainly don’t hold any ill will towards them at this point. We’re excited we can move forward and hopefully reestablish relationships there,” he said.