EL PASO, Texas (KTSM) — The City has reached a settlement with Daniel Villegas, who was falsely imprisoned for a 1993 double murder and spent 20 years behind bars.
The City of El Paso said it has reached a settlement of $8 million to resolve a federal civil lawsuit against the City.
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The lawsuit, filed in 2015, alleges violations of constitutional rights stemming from the investigation, arrest and prosecution of Villegas related to the 1993 murders of Armando “Mando” Lazzo and Robert “Bobby” England.
Before proceeding to trial, both parties agreed to participate in mediation, a common step in civil lawsuits that allows them to work with a neutral mediator to explore whether the case could be resolved. The City successfully reached a mutually agreed-upon resolution through mediation in the amount of $8 million, it said.
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“It’s a victory for Mr. Villegas,” said Russell Ainsworth, a member of Villegas’ defense team and partner with Loevy and Loevy, a Chicago-based firm. “He’s been fighting for over 30 years for justice. And this is a recognition of the wrongs that were done to him so many years ago.”
By resolving the case through mediation, the City said it eliminated the uncertainty of a jury trial, the risk of a potentially much larger judgment, and the costs and delays associated with continued litigation, including post-trial motions and potential appeals.
Villegas was seeking $20 million in damages, and the case involved events that occurred more than 30 years ago, creating significant challenges associated with witness availability and the passage of time, the City said.
“After carefully evaluating the risks, costs and uncertainties associated with continued litigation, the City determined resolving this matter through mediation was in the best interests of the City and its taxpayers,” said Karla Nieman, city attorney for the City of El Paso. “This resolution brings finality to a case that has been in litigation for years while avoiding the additional expense and uncertainty of trial and potential appeals.”
This settlement is not an admission of liability or wrongdoing by the City of El Paso.
The City said it has a responsibility to manage public resources prudently while ensuring that legal matters are addressed appropriately.
This resolution is consistent with what the City calls its “ongoing commitment to responsibly manage taxpayer resources while resolving legal disputes in a manner that best serves the public interest.”
Villegas filed a federal civil lawsuit against the City of El Paso and several current and former police officers in 2015. In 2025, Judge David C. Guaderrama of the U.S. District Court for the Western District of Texas granted summary judgment dismissing charges of malicious prosecution, false arrest, failure to intervene and conspiracy claims against all defendants in this case.
Civil lawsuits often involve multiple legal claims. While the court dismissed several of Villegas’ claims, others remained pending. Those remaining claims would have been resolved through a jury trial scheduled in August if not for mediation, the City said.
The allegations in this litigation concern events that occurred more than 30 years ago.
The City says it continues to have confidence in the El Paso Police Department and its commitment to professionalism, constitutional policing, accountability and public service.
“Over the past three decades, the Department has implemented numerous improvements, including updated investigative procedures, body-worn cameras, supervisory review, expanded officer training, policy revisions and the use of modern technology to strengthen accountability and transparency,” the City said.
Ainsworth, one of Villegas’ defense attorneys: “It recognizes the harm that was done to him as a 16-year-old child where he was forced to falsely confess to a murder he did not commit and then had to spend decades of his life incarcerated and branded a murderer. He now has the financial security to live his life and that’s a great thing.”
A City of El Paso spokesperson said the settlement will be paid for out of the City’s available financial reserves, also known as the “rainy day fund.”
“These reserves are maintained to help the City respond to unexpected expenses and financial obligations without disrupting day-to-day operations or essential public services,” the spokesperson said.
After the settlement is paid, the projected ending balance on the rainy day fund will be $154 million, the spokesperson said.
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