City of Chicago lawyers had recommended the deal, arguing that taking the case to court would cost taxpayers several times as much money to defend with outside counsel.

The Chicago City Council Finance Committee voted on two major settlements Friday. In a narrow 12-15 vote, the committee voted down a $1.25 million payment for the family of Dexter Reed, who was killed by Chicago police officers in 2024 in a shootout following a traffic stop on the West Side.

The rejection of the proposed settlement means the federal lawsuit filed by Reed’s family alleging that the city violated Reed’s civil rights will now head to trial.