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Lauren Wilkinson suffered a fractured jaw after her bike hit a pothole five years ago.
The cyclist was awarded more than £7,000 in damages from City of York Council following the incident.
However, the Press has discovered that no charges relating to legal fees were directly incurred by the organisation.
Lisa Nyhan, risk, insurance and creditors manager at the council, said: "The matter was dealt with by the insurance company in line with the policy held by the authority."
This coincides with news that the Department for Transport is to allocate an extra £100 million to councils to use on repairing potholes.
Transport secretary Philip Hammond said the repairs are "much-needed" following the recent harsh winter and should make the roads much safer and smoother.
Posted by Helen Jones
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