Commerce City will pay a $262,500 settlement to a family whose 3-year-old dog, Chloe, was shot and killed by a police officer in 2012.

The payout ends years of legal battles between Gary Branson, owner of the mixed-breed therapy dog, and Commerce City’s police department.

“The city’s out-of-pocket cost was a $50,000 deductible,” said Michelle Halstead, spokeswoman for Commerce City. “Our insurance agent covered the rest.”

The Animal Law Center in 2013 filed a civil suit in the case on behalf of Branson that was pending in federal court when the settlement was reached. Halstead said the payout was resolved in mediation. The Animal Law Center said the settlement was the largest of its kind.

“I am happy that we have been vindicated,” Branson said. “She deserved justice for what happened to her. This has been a very difficult time for me and am glad that it is now settled.”

The settlement was first reported Monday by KDVR-TV.

Records show notice of the settlement was filed in court on Friday. A trial in the civil suit was set to begin in February.

Chloe was killed on Nov. 24, 2012, when police were called to a Commerce City neighborhood about a dog running loose. Police tried to capture the dog with catchpoles and used a Taser before Officer Robert Price shot the dog five times.

A neighbor recorded the incident and posted the video on social media, quickly sparking questions and anger from animal advocates and pet lovers.

Price was acquitted in October 2013 by an Adams County jury of aggravated animal cruelty in the shooting.

Jesse Paul: 303-954-1733, jpaul@denverpost.com or @JesseAPaul