Rochester Settled Lawsuit With Susan Girdhari
The city agreed to a $140,000 settlement to resolve a lawsuit involving a wrongful arrest claim.
Updated on Oct. 3, 2026 in Criminal Justice
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The City of Rochester has reached a $140,000 settlement with Susan Girdhari to resolve a lawsuit filed against the city and three police officers. The agreement includes a full dismissal of all claims, with both parties avoiding further litigation in federal court.
Why it matters
The settlement was reached to eliminate the time, expense, and uncertainty of ongoing litigation. By resolving the matter, the city and its officers avoided an extended court process without admitting any liability for the events in question.
The settlement involves a payment of $140,000 to Susan Girdhari, which effectively ends the federal lawsuit filed against the city and three officers. All claims have been dismissed, and no liability was admitted by the city or the named police officials.
The players
Susan Girdhari
She is the plaintiff who filed a lawsuit against the City of Rochester after being arrested following a counterfeit bill report.
League of Minnesota Cities Insurance Trust
This organization serves as a risk-sharing pool that provides liability coverage and legal defense for member municipalities across Minnesota.
The details
Susan Girdhari filed the lawsuit in February 2026 after being taken into custody in Eau Claire County, Wisconsin, following a gas station clerk's report of a counterfeit bill in September 2025. The City of Rochester and the League of Minnesota Cities Insurance Trust finalized the agreement to close the case.
Timeline
September 2025: A gas station clerk reported a counterfeit bill.
October 2025: Susan Girdhari was taken into custody in Eau Claire County.
February 2026: Girdhari filed a lawsuit against the city and three police officers.
October 2026: The city settled the lawsuit.
Legal Context
This settlement aligns with standard municipal procedures for resolving civil disputes out of court to manage local liability. Such agreements are frequently utilized by cities to mitigate the high costs associated with prolonged federal litigation.
This settlement concludes the legal dispute, removing the need for further court proceedings involving city police officers. Residents should note that the resolution ends the active litigation, closing the matter for the local community and the city government.
The takeaway
The resolution highlights how municipalities utilize out-of-court settlements to manage legal risks and minimize taxpayer-funded litigation expenses. Parties often choose this route to secure a final conclusion rather than facing the unpredictable results of a trial.
Further reading
For more on how the legal system operates in the region, visit the Criminal Justice section.
Source note: This article includes information reported by KTTC.
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