The suit stems from a Planned Parenthood fundraiser in Downtown Yakima on July 23rd, 2005.
Since Planned Parenthood hired officers to provide security, its insurer will pay out the money.
City leader say they were fully prepared to take the case to court, but it was the insurer's right to settle.
In court documents, Joel Richards and his wife claim he was wrongfully arrested for accidentally bumping into a woman on the street.
Six eyewitnesses testified against the officers, alleging excessive force.
City leaders say Joel Richards was arrested for assaulting a police officer.