updated 1/14/2008 3:39:34 PM ET 2008-01-14T20:39:34

The Supreme Court on Monday dismissed a case brought by a Wal-Mart Stores Inc. employee who alleged the company had discriminated against her after she was disabled in an on-the-job accident.

The court said the case was dismissed under Rule 46.1, which provides for dismissals when both parties agree to settle a dispute. The justices had said they would consider the case Dec. 7, and oral arguments were expected to take place this spring. The Supreme Court did not provide additional details.

At issue in the case was how far employers under the Americans with Disabilities Act must go to accommodate disabled employees.

Pam Huber, who still works at Wal-Mart, was injured in April 2001 while employed as an order filler in a Wal-Mart distribution center in Clarksville, Ark. She applied for a different position at equivalent pay, but didn't get the job.

Wal-Mart said in court papers that it hired a more qualified employee. Huber was later given a job at about half the hourly wage she earned as an order filler.

Huber sued in June 2004, arguing that under ADA rules, she only had to be qualified for the equivalent position, not the most qualified, and should have been reassigned to the job with equivalent pay.

A call to Wal-Mart seeking comment wasn't immediately returned.

A federal court in Arkansas sided with Huber, but the 8th U.S. Circuit Court of Appeals, based in St. Louis, reversed and ruled in favor of Wal-Mart.

The ADA "only requires Wal-Mart to allow Huber to compete for the job, but the statute does not require Wal-Mart to turn away a superior applicant," the appeals court said.

Wal-Mart shares fell 25 cents to $47.47 in afternoon trading Monday.

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