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A former secretary’s $1-million lawsuit against Ocean View School District has been settled out of court, the plaintiff’s attorney said this week.

Judy Martell filed in Orange County Superior Court in January 1996 alleging that she had been sexually harassed by Supt. James R. Tarwater while she worked as his executive secretary.

Martell, now 51, first took her allegations to the school district, which ordered an investigation by an outside law firm.

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She was fired in 1994 after she refused to take a psychiatric test ordered by the district after its investigation found that her allegations were without merit.

Martell’s attorney, Sharon Lowsen, said that the case was “amicably resolved” but would not comment further, citing the confidentiality of the agreement.

Tarwater, 52, has denied the allegations.

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