Sebastopol is paying $1.95 million to end a federal lawsuit over a 2024 arrest that began with a diabetic emergency on Gravenstein Highway and ended with a broken arm — news that surfaced Friday, as the holiday weekend was starting. For scale: the city’s entire general fund budget this year is $15.7 million.
The arrest
According to the lawsuit and Press Democrat reporting, Callaghan was driving on Gravenstein Highway on July 24, 2024, when a diabetic emergency set in. Police started a traffic stop on suspicion of drunk driving, and Callaghan crashed his pickup. His daughter, then 6, was with him.
What the complaint describes next is the heart of the case: force that broke Callaghan’s arm, then nearly five hours in handcuffs — after paramedics confirmed a medical emergency and after alcohol tests came back negative. The suit alleged excessive force, unlawful detention, false arrest and a conspiracy among officers to justify the force used. Prosecutors later declined to charge Callaghan with anything.
Settled on the way to trial
Callaghan’s attorney, civil rights lawyer Izaak Schwaiger, filed the case on July 24, 2025 — the one-year anniversary of the arrest. Court records show the case — docket number 3:25-cv-06225 — was headed to a jury: Illston had set trial for Dec. 7 of this year, with a 10-day estimate, and the docket shows a settlement conference on Nov. 20.
The city’s announcement, as reported by the Press Democrat, framed the payout as an economic decision in the community’s best interest and not an admission of liability. Schwaiger told the newspaper the settlement reflects the officers’ liability and that his client did not deserve what happened to him.
What $1.95 million means in Sebastopol
This is a city that went to voters in November 2024 for a half-cent sales tax, Measure U, expected to raise about $1.5 million a year for basic services. The Callaghan settlement is bigger than a full year of that tax. The police department’s general fund budget this year is $5.8 million across a 22-person department — the settlement is a third of it. And the general fund as a whole runs nearly break-even: $15,689,718 budgeted in, $15,685,773 out, a cushion of $3,945. The settlement is roughly 500 times the cushion.
The unanswered question is who actually writes the check. The city has not said publicly whether insurance or city funds cover the settlement — and that answer determines whether residents feel this in next year’s budget or mostly in future premiums. City hall is also new to exactly these questions: Mary Gourley took over as city manager in May.
The dollar figure is the second-largest fact in the story. The first is that a jury never got to hear it.
FAQ
Was Callaghan ever charged with a crime?
No. The Sonoma County district attorney declined to file charges.
Did the city admit wrongdoing?
No. In announcing the settlement, the city said settling was an economic decision and not an admission of liability, per the Press Democrat.
Where does the settlement money come from?
Not yet disclosed. The city has not said whether insurance or city funds cover the payout.