Under the agreement, the hospital would rename its Smithers Alcoholism Rehabilitation and Treatment Center and give nearly $6 million of the bequest made by R. Brinkley Smithers to another nonprofit that will oversee the treatment center.

Smithers gave the hospital funding to establish and operate the Smithers Alcoholism Rehabilitation and Treatment Center for research and treatment of alcoholism. Following his death in 1994, his widow, Adele C. Smithers, said the hospital violated the terms of her husband's gift.

Mrs. Smithers said the hospital had misappropriated $5 million from the endowment fund and was planning to put the proceeds from the sale of the townhouse where the treatment center was first housed into its general fund.

"The hospital is pleased to have this matter behind it," said attorney Edward S. Kornreich, who represented the hospital in the lawsuit. "St. Luke's will continue to operate world-class substance-abuse programs, though the program will no longer be operated under the Smithers name."