Denver city attorneys have agreed to pay $3.25 million to a former jail inmate who accused guards of ignoring his screams while being tortured, choking him later when he complained about his pain and then covering up the abuse. City officials called it the largest settlement of its kind.

The proposed settlement with Jamal Hunter requires approval from the City Council and U.S. District Judge John Kane.

Kane told The Denver Post that even if he approves the settlement, he would press forward with other inquiries into alleged misdeeds by the city.

“There needs to be corrective steps to make sure this doesn’t happen again,” Kane said. “It doesn’t do any good to have one scandal after another.”

City Attorney Scott Martinez told reporters the payment was not an admission of liability, but is “an opportunity to move forward.”

Martinez also disclosed that he had placed one of his top attorneys on “investigatory leave” related to accusations of misconduct in the case.

The announcement came one day after Sheriff Gary Wilson stepped down amid a series of embarrassing disclosures about the department — some of which stemmed directly from the Hunter case.

Mayor Michael Hancock, members of the Denver City Council and Martinez met in an executive session Tuesday morning to discuss the settlement.

Hunter “feels his civil rights have been vindicated. He is proud to be an instrument of change,” Hunter’s attorney Qusair Mohamedbhai said at a joint news conference with Martinez in the City and County Building.

Martinez said he believes it’s the largest city payout ever in a civil case. The next-closest settlement, for $3 million, was reached in 2008 for the family of Emily Rae Rice, who bled to death in the Denver City Jail.

Because of its size, the City Council will be asked Monday to transfer money from the city’s contingency fund to beef up the liability claims fund. A final vote is likely Aug. 4.

The settlement “is a big hit,” said City Councilman Paul Lopez, chairman of the newly reorganized Safety & Well-being Committee. He said the mayor’s announcement of changes in the Sheriff Department Monday was an important step.

“I think the safety and well-being of inmates in our facilities has top priority,” Lopez said. “You can’t compromise that. … I look forward to more steps in terms of reforming the department.”

VIDEO: See video of Hunter being choked by a sheriff’s deputy.

A settlement would spare the city from further disclosures about the way the city has managed its jails. In their latest request for sanctions against the city, Hunter’s attorneys were seeking the public release of internal affairs documents in dozens of recently launched abuse investigations.

During the court proceedings, Kane already ordered the release of previously sealed documents and held an extraordinary open-court deposition in which a former inmate detailed how he worked with a jail guard to sell pot and porn to fellow inmates and mete out beatings to inmates who crossed him.

Kane also has asked federal authorities to investigate the police department and the sheriff’s office after accusing two internal affairs officers of inappropriately pressuring a key witness in the Hunter case not to testify.

Hunter had been arrested in April 2011 on misdemeanor counts of false imprisonment, assault and obstructing telephone service. Dating back to 1993, he has been arrested for numerous misdemeanor offenses including disturbing the peace, property damage and possession of drug paraphernalia.

Hunter accused the city and Denver jail Deputy Gaynel Rumer of facilitating and encouraging the brutal 2011 attack against him by inmates in his cell. Rumer did not come to Hunter’s aid while the inmate screamed and inmates attacked him, scalding his genitals.

Rumer has denied the allegations.

Thirteen days after the attack, jail video cameras recorded a noncombative Hunter being choked by Denver sheriff’s Deputy Edward Keller.

To this day, neither Keller nor anyone else has been punished in the incident in which Hunter was also tased twice — although a disciplinary panel has recommended Keller be suspended for 30 days.

Revelations in the Hunter abuse case led directly to Wilson’s resignation and an investigation by independent monitor Nick Mitchell revealing scores of inmate grievances that hadn’t been properly investigated.

Martinez said one of his top attorneys, Assistant City Attorney Stuart Shapiro, had been placed on paid leave in connection with his actions in the Hunter case.

Shapiro has been accused of sending e-mails intended to coerce police into intimidating a key witness and then telling Hunter’s attorneys that he was “not involved in the investigations nor am I privy to the internal workings of the investigations.”

Despite orders from Kane to share all documents in the case, the e-mails from Shapiro to police investigators were not disclosed in court until last month.

Martinez said he has ordered an independent investigation into actions by his office — including himself.

“We are committed to addressing the issues at hand now,” Martinez said. “We will resolve any alleged inappropriate actions and make the changes necessary to raise the level of accountability.”

Martinez said Hancock’s chief of staff, Janice Sinden, would select the independent investigator from among “a few” law firms identified through his office’s competitive selection process.

On Monday, Hunter’s attorneys filed a motion in federal court asking to dismiss a June 26 motion for additional sanctions against Denver city attorneys — including Shapiro — accused of pressuring witnesses and failing to disclose evidence.

“However, plaintiff requests that this withdrawal be without prejudice so he may … (refile) if it becomes necessary,” the motion says.

Kane granted the motion. His order indicates that he may take up the same issues himself.

“The motion now being withdrawn contains serious allegations of misconduct on the part of Denver in responding to discovery requests and in making false and/or misleading statements to the court,” his order says.

Kane said he does not yet know whether he will approve the agreement.

“I can’t call balls and strikes until they pitch the ball,” Kane said.

He said the monetary settlement may solve Hunter’s issues but it would “absolutely not” resolve the practical aspects of the case.

“To state the matter succinctly, the plaintiff can withdraw the motion, without prejudice to refile, but I may, should circumstances unknown to me at this time require, reinstate the motion as well as the issues implicit in injunctive relief and submit them to further enquiry and possible disposition,” Kane said in his order.

The judge said he might approve the monetary settlement but proceed against city attorneys accused of ethical breaches.

“The nitty gritty of this is that the judge can treat this as a contempt of court case,” Kane said.

Kirk Mitchell: 303-954-1206, denverpost.com/coldcases or twitter.com/kirkmitchell