The Davis County Solid Waste Management board has approved a $50,000 settlement with attorneys of Chrysler Capital Inc. two years after negotiations with Chrysler to buy the district's burn plant went sour.

The board approved the settlement this week to avoid a potential lawsuit to recover $100,000 in attorney fees, said chairman J.B. Dewell.In spring 1987, the district attempted to negotiate a leveraged lease with Chrysler Capital to raise revenue that could be used to help stabilize fees charged haulers to dump garbage at the plant.

Under the proposal, Chrysler would have bought the plant and leased it to the district, reaping investment tax credits. The district would have earned about $20 million and would have had the option to repurchase the plant after 20 years for a nominal fee.