Embattled former Minister of Education Ruel Reid has been paid $3.3 million by Jamaica College (JC) in an out of court settlement over allegations of incentive payments owed to him from his time as principal of the institution.

In a statement, the Jamaica College Trust said the “difficult commercial decision” was taken after it sought legal advice and weighed the risk of proceeding with what it said would have been a costly litigation process.

Derek Jones, Chairman of the Jamaica College Trust, said the settlement comes at a cost of 10 per cent of the amount at risk.

“This puts the saga behind us and allows us to consider how best the money which was at risk in the lawsuit can be best used to further the interests of the 1,650 boys who attend Jamaica College,” Jones said.

Reid in July 2023 filed a lawsuit in the Supreme Court against the Jamaica College Trust and the Jamaica College Foundation claiming an amount of some $28 million including interest. He alleged that certain incentives which had been agreed when he was the principal of JC should be paid to him even during the period he was absent from the school on secondment, and then on special leave, to assume the role of minister of education.

He alleged that the arrangements included certain verbal agreements made with the late Danny Williams who had occupied various official positions connected with Jamaica College.

According to the statement, the JC Trust and the JC Foundation consulted with Williams and took legal advice which indicated that they had a good chance of success in defending the lawsuit.

However, it noted that the death of Williams in September 2023 meant that he would have been unavailable to give evidence to refute the claims of verbal agreements made by Reid. Consequently, the Trust decided to pursue the option of a settlement with Reid, the school said.

“The Trust was advised that a trial of the matter would likely take place after several years and at a probable cost in legal fees of approximately $5 million. The total amount at risk was therefore of the order of $33 million,” the JC Trust said.

Jones expressed his relief with the development and said he is now directing his complete focus and efforts towards the further advancement of the school, the staff and students.

Reid has been before the court since October 2019 on charges of defrauding the Ministry of Education and Caribbean Maritime University of millions of dollars.

He was forced to resign from the Andrew Holness-led Cabinet in March 2019.