Lawyers for the city of Chicago told a federal judge today they have reached a $6.2 million settlement with more than 800 plaintiffs in a class action lawsuit stemming from the mass arrests of protesters during a 2003 demonstration against the Iraq war.



The issues in the case played a role in city officials' examination of how they handle large demonstrations in the months leading up to the G-8 and NATO summits, which could attract tens of thousands of demonstrators to the city in May.



Lawyers for the city said payouts in the suit would not be introduced to City Council until June. In a smaller case stemming from the same demonstration, city officials reached a settlement last month but said the amount would not be released until the settlements are introduced for council for approval.



The city's defense in the case was weakened last year when federal appellate Justice Richard Posner ruled the arrests were unjustified because police allowed the massive demonstration to take place without a permit, but then decided to arrest people for participating without giving them a clear order that it was time to disperse.



Hundreds of people became trapped by police at Chicago and Michigan avenues. Confused demonstrators who said they just wanted to go home were instead arrested and held overnight. All of the arrest charges were later dismissed in court, Posner noted.



People who were arrested, charged and detained would receive payouts of up to $15,000 under the proposed settlement and those arrested but not charged would receive payments of up to $8,750. Those where detained at the scene but not arrested may get up to $500, said Joey Mogul, one of the lawyers for the plaintiffs.



U.S. District Judge Virginia Kendall accepted the proposed settlement and set a date next month to discuss attorney fees, which were not included in the proposal and would likely boost the city's total costs.