Ann Arbor Approves $45,000 Khoshkhoo Settlement
The City Council voted Thursday to pay a $45,000 settlement to resolve a crash-injury claim involving a police vehicle.
Updated on Nov. 6, 2026 in City Hall
Live Poll
Do you trust your city government to fairly handle residents' complaints?
Ann Arbor City Council voted Thursday, November 5, 2026, to approve a $45,000 settlement with Tina Khoshkhoo over a head injury she claims stemmed from a November 2023 crash with a police vehicle. The settlement is made without an admission of liability and will be paid from the city's general fund balance.
Why it matters
The settlement resolves a claim arising from a police vehicle responding with lights and sirens to an emergency call, a situation that shapes how the city handles liability for emergency-response incidents. Council also approved a separate $70,000 payout to resolve a lawsuit from two housing associations, addressing the city's obligations to residents of Ann Arbor.
The council approved a $45,000 payout to Khoshkhoo and a $70,000 payout to resolve housing-association claims that sought nearly $155,000 in refunds. Neither settlement includes an admission of liability, and the source does not detail how the city will adjust future fee calculations beyond the agreed credits.
The players
Ann Arbor City Council
The elected legislative body of Ann Arbor, Michigan, which approved both settlements and the Briarwood dispute resolution.
Tina Khoshkhoo
The claimant who filed a May 2025 injury claim against the city and a police officer over a November 2023 crash.
The details
Khoshkhoo filed her claim in May 2025 alleging a head injury from a crash with a police vehicle responding to an emergency call with lights and sirens. Separately, the Oaks of Ann Arbor and Windsong housing associations alleged the city improperly applied its payment-in-lieu-of-tax ordinance and overcharged service fees for 43 low-income units.
Timeline
November 26, 2023: Police-involved crash occurs, causing the claimed head injury.
May 2025: Khoshkhoo files her claim against the city and officer.
2024 and 2025: Housing associations send refund request letters to the city.
February 2026: Housing associations file their lawsuit against the city.
November 5, 2026: Council approves both settlements.
Political Context
The housing-association lawsuit centered on how Ann Arbor applied its payment-in-lieu-of-tax ordinance to low-income units, and the settlement resolves that challenge without an admission of liability. The city's agreement to resolve the Briarwood dispute was framed as a way to avoid litigation costs and allow construction to proceed.
Residents living in low-income housing units in Ann Arbor may see changes to how water and sewer fees are calculated and credited going forward. The settlement's 10-year period after which future fees must be paid in full will affect the fee obligations of affected property owners.
The takeaway
Settlements approved without admissions of liability can resolve disputes quickly, but affected residents should watch how the city implements the agreed fee credits. Residents with similar fee concerns can track future council actions on these agreements.
Further reading
For more local government coverage, see City Hall reporting on council decisions in Ann Arbor.
Source note: This article includes information reported by Mlive.
Live Poll
Do you trust your city government to fairly handle residents' complaints?
