EPHRATA - The Grant County PUD receives $250,000 back in attorney's fees as part of a settlement agreement with a Wenatchee law firm.

Jeffers, Danielson, Sonn and Aylward represented Grant PUD in an ongoing case involving a group of Crescent Bar residents.

The residents sued the district for not renewing their lease to stay on the island.

Grant PUD owns the island, which lies within the boundaries of the district's Priest Rapids Project.

In November, Jeffers, Danielson, Sonn and Aylward were disqualified as Grant PUD's attorneys due to a conflict of interest, according to a Nov. 16, 2011 Crescent Bar Chronicle article.

A Crescent Bar Condominium Master Association representative spoke with an attorney of the firm about representation on July 31, 2008.

At that time, the attorney wrote that the firm  would be "conflicted out of representing the PUD in this matter."

Grant PUD commissioners unanimously approved the settlement agreement at their commission meeting this week.

Grant PUD commissioner Randy Allred said commissioners discussed the issue several times. The amount was the district's original counteroffer, he said.

The district receives an initial $30,000 payment, followed by 11 monthly payments of $20,000 each, totaling $250,000.

"The court, the Hon. Justin Quackenbush, granted the motion to disqualify JDSA (Jeffers, Danielson, Sonn and Aylward) based on the finding of a violation of RPC 1.18 (Washington Rules of Professional Conduct)," according to the settlement. "It became necessary for Grant PUD to retain new counsel and pick up the defense of the litigation where JDSA left off. Grant PUD contends that the disqualification and transition to new counsel caused substantial damages to Grant PUD."

The settlement releases JDSA from district claims associated with JDSA's representation in the case.

Grant PUD paid the firm a total of $285,000 in legal fees for its representation in the case.