The family of a suburban New York teacher killed and dismembered by a neighbor home on a weekend pass from an upstate mental health facility has settled a wrongful death lawsuit.

State Supreme Court Justice F. Dana Winslow approved a $500,000 settlement Tuesday between the family of Denice Fox and a psychologist who had treated convicted killer Evan Marshall.

The now-40-year-old Marshall pleaded guilty to killing the retired teacher in August 2006 in an exclusive gated community in Glen Cove, Long Island. He was arrested with her head in his car trunk.

He is serving 30 years to life.

Fox's family claimed releasing Marshall for the weekend was inappropriate because he was a danger to the community.

An attorney for the psychologist did not attend Tuesday's hearing.