City of Biddeford and former City Manager reach settlement

The City of Biddeford and former City Manager James “Jim” Bennett have reached a settlement.

Bennett took on the position of Biddeford’s city manager in 2015. In October 2024, Bennett announced he was retiring from the position, effective April18, 2025. On Feb. 20, Bennett was put on administrative leave for the remainder of his tenure with the city. The city did not disclose why he was put on administrative leave.

In May, Bennett filed a complaint in court, arguing that he was owed more than $200,000 by the city.

He claimed that because he gave more than 30 days notice, he was entitled through an extension agreement with the city to receive a payout of one year’s salary, plus vacation time, cell phone and internet and car allowance – a total of about $205,300.

Assistant to the City Manager Danica LaMontagne released a statement on Monday, Oct. 20 that she said was agreed upon by both parties:

The City and former City Manager Jim Bennett are pleased to announce that they have come to a mutual resolution of their dispute over Bennett’s separation from the City, allowing both sides to move forward. The litigation was a contract dispute and did not involve the performance of the former city manager.

LaMontagne said the settlement will become public after a final release is completed and signed.

Publisher Liz Gotthelf can be reached at newsdesk@sacobaynews.com.