Curbs felt he was forced to resign when the board went above his head to sell George McCartney and Anton Ferdinand despite promising no more players would be leaving the squad.
Curbishley is not set to pocket around £4 million in compensation and the Hammers will have to pay for all of the court fees on top.
Speaking to the League Managers website he said, “am obviously delighted with this result. I very much enjoyed my time at West Ham and never wanted to leave, but on joining the Club I insisted that my contract contained a clause confirming that I would have final say on the selection of players to be transferred to and from the Club.
"The Club completely ignored my contract when selling Anton Ferdinand, and when George McCartney was then sold, the Club having given me assurances that no players would be leaving after the sale of Anton Ferdinand, I had no alternative but to resign.
“My authority and integrity were undermined and my position was made untenable. I now wish to put this entire matter behind me.
“I would like to thank the LMA, my lawyers, Mike Morrison of Hill Dickinson, and Paul Gilroy QC, for all of their support and for the hard work they put in on my behalf in order to help me achieve this outcome”.