Facts

Michael Kerkeles was arrested in 2005 based on an accusation that he raped his next-door neighbor. In an attempt to get Kerkeles to confess, the San Jose police created a false laboratory report that indicated that Kerkeles had raped the woman. An officer testified that the report was real at a preliminary hearing, and the judge found enough evidence to hold Kerkeles for trial.

When the laboratory report was revealed to be phony, the prosecutors dropped all charges.

Kerkeles then filed suit against the City of San Jose.

The city argued that the police officer at the hearing had believed the report to be real and simply had made a mistake.

Result

The parties settled for $150,000. The agreement also included $1 million for attorney fees.