TUPELO - Former Police Capt. Cliff Hardy will receive a $400,000 legal settlement with the city, attorneys involved in the case confirmed Monday.

Hardy had sued Tupelo in 2009, claiming he was forced out of his job after speaking out against treatment of then-colleague Robert Hall.

Hall had been demoted from assistant chief to captain for his role in freeing an intoxicated hit-and-run suspect in May 2006.

He later pleaded guilty to misdemeanor charges connected to that incident and resigned. But he was rehired as assistant chief earlier this year.

Hardy no longer works for the police department.

A jury in the U.S. District Court of Northern Mississippi sided with Hardy in August, and Judge Sharion Aycock awarded him $425,000.

But the city appealed the case to the U.S. Court of Appeals in New Orleans, where it could have lingered for years.

"All parties will benefit by settling this case and putting it behind us," said Mayor Jack Reed Jr. in a press release. "While the result of an appeal to the 5th Circuit Court of Appeals would have been uncertain, the advantages to our community by putting this to rest are certain. The city of Tupelo is committed to moving forward together as a progressive community that we can all be proud to call home."

Hardy will receive the settlement in one lump sum, said his attorney, Jim Waide. The city will pay one-fourth of the amount from its general fund; the rest will be paid through Tupelo's insurance provider, said city attorney John Hill.

Although the settlement was finalized Monday, attorneys on both sides had been negotiating off and on for months.

The City Council was informed of a pending agreement during a closed-door meeting last week, during which members authorized municipal attorneys to cinch a deal.

Hill said city officials simply wanted to put the episode behind them; Waide said city officials finally realized that the case had little chance of being overturned.

Waide also said Hall's reinstatement to the police force had no bearing on the settlement, although the attorney did commend the city for bringing him back on board.

"Cliff is relieved that it's over, and he is very interested in the police department and wants things to change," Waide said. "And hopefully it will with Tony (Carleton, the new police chief) and Robert being down there and most of the old administration being gone."

Contact Emily Le Coz at (662) 678-1588 or emily.lecoz@djournal.com.