A $125,000 Federal Court settlement was reached Monday in the Adam Tatum case after nine hours of negotiations.
Attorney Robin Flores said $112,500 would be paid by the city of Chattanooga and $2,500 by Erlanger Medical Center. He said the remaining $10,000 was from an undisclosed source.
Attorney Roger Dickson of the Miller and Martin law firm provided over the lengthy mediation session that involved Police Chief Bobby Dodd, City Council Chairman Yusuf Hakeem and others.
Tatum, who now walks with a cane following the clash with city police officers at a Salvation Army halfway house, was also present.
The incident was caught on video and widely-distributed.
The lawsuit filed in January sought $20 million in compensatory damages and $30 million in punitive damages.
Attorney Flores said his client had been willing to accept the offer. He said he plans to move away from Chattanooga.
Tatum was also represented by attorney Mike Raulston.
City Police Officers Adam Cooley and Sean Emmer were fired for using excessive force against Tatum, a federal inmate. However, an administrative law judge has ruled that they should have their jobs back. The city is appealing the decision, but has resumed paying the two officers.
The complaint was brought against the city, Erlanger Health System, Cooley, Emmer, officer James Smith, officer Joseph Neighbors, officer Mike Wenger and "approximately 11 unidentified city police officers."
The suit claimed that officers Emmer and Smith struck the victim over 100 times each.