Patrick Snay, 69, a former headmaster of Gulliver Preparatory School in Florida was set to receive the amount after settling a 2011 age discrimination suit with the school he once headed.
However, his daughter, Dana ruined the USD 80,000 deal by blabbing about it on Facebook, the 'Miami Herald' reported.
"Mama and Papa Snay won the case against Gulliver. Gulliver is now officially paying for my vacation to Europe this summer. SUCK IT," she wrote on the social networking website.
The message circulated among the former Gulliver student's 1,200 Facebook friends and eventually made its way back to the school.
The school claimed the post violated the settlement's confidentiality agreement.
A judge last week tossed out the settlement, ruling the ex-employee and his daughter breached the terms of a confidential agreement when she took to social media to brag about it, the report said.
The case came to fore in 2010 when Gulliver declined to renew Snay's contract following years of employment.
Snay claimed age discrimination and retaliation that involved his daughter.