SOUTH BEND — The University of Notre Dame and a former catering employee who accepted a mistaken tip of nearly $30,000 have settled their legal dispute.

In court documents filed Wednesday, Sara Gaspar has agreed to pay back Notre Dame $16,859.79, about half of the original sum placed in her bank account.

The debt will be replenished slowly through payments of $50 each month, meaning that the entire debt likely would be repaid in about 28 years.

The case against Gaspar revolved around a mistaken gratuity that was placed in Gaspar’s bank account while she was a Notre Dame employee.

On April 17, the former catering employee was to be paid a gratuity of $29.87, but because of an error, court documents state, a total of $29,387 was deposited into her account.

Instead of returning the money, the recent lawsuit filed by the university claimed that Gaspar spent the extra cash on bills and a new car.

Gaspar previously admitted to spending the cash, but said that she tried to alert the university about the large sum, but that her calls were not returned.

The woman previously said she believed that because the money was a gratuity and not wages, she was entitled to keep it.

The compromise reached between Gaspar and Notre Dame cancels pending litigation by the university as long as Gaspar satisfies the debt, according to court documents.

As collateral to secure the agreement, Gaspar put up the car, a 2002 Volkswagen Jetta, she purchased earlier this year with cash from the large gratuity payment.

Continue to check this Web site and read Saturday’s South Bend Tribune for updates on this story.