The city agreed to pay $9 million to a teenage beauty queen badly injured when her car crashed into an equestrian fence, sending a chunk of wood through her forehead.
Samantha Palumbo, 18, suffered a broken jaw and severe brain injury in the April 2005 crash on San Dimas Avenue.
The accident led to criticism over the city's installation of the equestrian
fences along roadways.
As the case headed to trial, the city's lawyer Scott J. Grossberg and Palumbo's attorney Gregory G. Rizio reached a settlement Wednesday after two days of mediation.
"The concept from the beginning was to come up with some resolution that would help her," Grossberg said.
The settlement money will go to Palumbo's ongoing care and rehabilitation to ensure her best quality of life, the attorney said.
Rizio said the money will be put into a trust or an annuity fund.
Palumbo was the 2004 Miss California Junior National Teenager.
After months of hospitalization and rehabilitation, she began walking and engaging others by using her own form of sign language.
In June, she attended her San Dimas High School prom and received
an honorary diploma.