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LAS VEGAS, N.M. — A Las Vegas woman who said a police officer dragged her during a dispute over a restraining order has settled a lawsuit against the city.

Panchita Maes Alirez received $8,500 in return for dropping her lawsuit, said her attorney, Stephen Peterson of Taos.

City Attorney Matt Sandoval declined to comment.

Alirez's lawsuit alleged her left shoulder, arm, rib and hand were injured when she was grabbed, dragged and slammed on the hood of her car on Feb. 6, 2005.

Her lawsuit, filed Jan. 19, 2007, said police accused her of violating a restraining order, disorderly conduct and resisting or refusing to obey an officer. The lawsuit said Alirez was found not guilty of resisting an officer and disorderly conduct. It said no restraining order ever existed.

A Las Vegas Police Department report says officers showed up after a neighbor reported Alirez was cursing her and entered her yard. The report says Alirez wouldn't put her arms behind her back to be handcuffed, yelled and wouldn't get into the police car.