Billings Catholic Schools will meet with attorneys for a family claiming a stake in the St. Francis Upper building with the potential to reach a settlement.
District Judge Gregory Todd postponed the case and ordered the parties to hold a settlement conference before March 5.
A man named David Cunningham, who has power of attorney for his mother, Burnley Cunningham Wadsworth, is seeking a share of the deed to the former Catholic school building.
Wadsworth is the great-granddaughter-in-law of Annie Morrissey, who was the sister of Kate Fratt, according to Cunningham's court filings. A wealthy widow, Fratt donated the grounds and money for the school to the Catholic Diocese in 1916.
The donation was made on the condition that the property is used as a parochial school. Otherwise, interest in the property would be split between groups of family members and the diocese.
Billings Catholic Schools is seeking a court order giving it full ownership of the property so it can sell it.
Parties are due back in court to settle pending motions by April 20.