POSTED: Monday, June 18, 2012 --- 10:00 a.m.

RACINE, Wis. (AP) -- Racine's mayor is facing a quandary after he reached a confidential settlement in a slander case brought against him by a former employee.

The terms of the settlement haven't been released, and a confidentiality clause prevents either side from revealing the terms. However, because taxpayers may have been liable for the settlement, The Journal Times of Racine is arguing the mayor's office has to release the terms under the state's Public Records Law.

The city paid $100,000 to defend Mayor John Dickert. Former city employee William Bielefeldt had accused Dickert of slandering him in radio comments the mayor made while campaigning for re-election.

Dickert and the city have filed a lawsuit asking a judge whether they can release the files without being punished for violating the confidentiality clause.

------

Information from: The Journal Times, http://www.journaltimes.com

AP-WF-06-18-12 1453GMT

Copyright 2012: Associated Press