The $125,000 settlement goes to Jamie Valera, who was shot in the arm during the April 2008 incident.
Officers were called to the 1800 block of 42nd Street to break up a fight on the night of the incident. A vehicle tried to leave the scene and hit Cpl. Michael Caldwell. Caldwell opened fire on the vehicle, hitting Varela in the arm.
The driver of the vehicle, Raul Lara, was arrested and later convicted of felony aggravated assault on a public servant. Lara is behind bars, serving his sentence.
Police say Varela was not involved with Lara's crime, and that he was just in the wrong place at the wrong time. Caldwell was eventually discharged from the Odessa Police Department following the incident.