A Morristown police officer will soon be getting a million dollar settlement following a civil jury’s decision in his favor in the whistleblower retaliation case involving the town’s police chief.

According to Officer Keith Hudson’s attorney, Charles J. Sciarra of Sciarra & Catrambone, LLC, the settlement is for $1.15 million.

The settlement was approved at a recent Morristown council meeting.

Hudson will receive $600,000 from the town, and another $550,000 will come from the town’s insurance fund, according to Morristown Mayor Tim Dougherty.

“We are pleased to reach an agreeable settlement with Patrolman Hudson that will cost taxpayers far less than originally anticipated,” said Dougherty.

“To prevent similar instances from occurring in the future Public Safety Director Michael Corcoran has already enacted several key changes improve departmental oversight and handling of personnel We trust that Director Corcoran will make the right decisions to resolve this situation and enhance accountability.”

In line with the the terms of the settlement, the town will drop their appeal to the civil jury’s decision to award Hudson for compensatory and punitive damages in the case.

"We are pleased that the matter has now resolved. Keith looks forward to continuing his career of service to the public in law enforcement,” said Sciarra.

The dispute between the Hudson, a 19-year veteran of the force, and Police Chief Peter Demnitz, a 36-year-veteran of the force, originated in 2014 after the officer reported the chief was working a number of freelance jobs while on the job.

Hudson and another officer reported allegations to the Morris County Prosecutor’s Office.

Demnitz worked for several entities, including Public Service Electric & Gas, Jersey Central Power & Light, Mill Creek Construction, Verizon and Morristown Medical Center “during his normal work hours and while on duty for the town,” Hudson charged.

Although he was working these side jobs, Demnitz still listed himself as present on the daily work sheet and "neglected his duties as chief of police,” according to the complaint Hudson filed.

After reporting the allegations, Hudson said in his suit that he was demoted from the detective bureau, and suffered a pay cut and other forms of retaliation and harassment.

Chief Demnitz has been on paid administrative leave since December, according to various media reports.

Taylor Tiamoyo Harris may be reached at tharris@njadvancemedia.com. Find NJ.com on Facebook.

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