Rectory row settled out of court

Mr Owen's three-year legal battle ended on Tuesday

A long running dispute between the Bishop of Stafford and a clergyman has been settled out of court.

On Tuesday, the High Court had been due to hear the Reverend Ray Owen's bid for compensation, and the right to occupy Henley Rectory, against the Bishop of Stafford.

Mr Owen first took legal action after he lost his job as team rector in the parish of Hanley, Stoke-on-Trent in 1999.

But after a day of out-of-court discussions, both sides agreed the bishop would recover possession of the rectory, where Mr Owen still lives, by 28 February next year.

'Expresses confidence'

Mr Owen will be given a housing allowance, a full stipend and be appointed as a pastoral auxiliary to the bishop until Mr Owen's retirement.

An agreed statement issued on behalf of both sides said Mr Owen did not lose his job because of any impropriety, but because the bishop felt it to be in the best interests of the parish, the congregations and Mr Owen himself.

Mr Owen has accepted another job

It went on: "Ray Owen did not share the bishop's view of the situation, however, he does not now wish to pursue a claim that the bishop's decision not to renew his term of office was unlawful."

It concluded: "The bishop expresses confidence that Ray Owen's new role would be a positive chapter in his ministry following the difficulties which all concern now regret.

"Those difficulties have now passed and Ray Owen and the bishop look forward to the future."

No appeal

The judge said they would be "looking forward in a positive way rather than engaging in recrimination over what is past".

Mr Owen's original claim he had been unfairly sacked had already been rejected by the Court of Appeal, and he had been refused the right to appeal.

Mr Owen's case caused controversy because, under 90-year-old law, he was given no right to challenge his dismissal at an employment tribunal.

Each side will pay its own costs, unofficially estimated to total about £100,000, although Mr Owen is receiving legal aid.