Cleveland police have agreed to pay £550,000 in damages to a lawyer it falsely imprisoned.
James Watson, a solicitor from Middlesbrough, was arrested in June 2009 after his client was acquitted of conspiracy to kidnap. Police suspected he was part of a conspiracy to make witnesses change their story.
He was held in a cell for almost 30 hours and questioned on suspicion of perverting the course of justice before being released on bail. His wife, Rita, and their two sons were held in a room of their house for more than seven hours.
The house and his office were searched, and documents – including sensitive papers protected by legal privilege – were taken and held by police. After a two-year investigation, no charges were made against Watson.
Cleveland police agreed to the settlement after an investigation by the Independent Police Complaints Commission, which was highly critical of the force.
"The sum offered and accepted in this case was at the absolute maximum, there is no higher reward of exemplary damages that a court could make. And so that is the clearest recognition on the chief constable's part that the conduct of her officers was utterly indefensible," Watson's lawyer Fiona Murphy told Newsnight.
In the wake of their inquiry, the IPCC recommended that Cleveland police suspend Ch Insp Anthony Riordan, who led the investigation into Watson. But rather than suspend Riordan, Cleveland police's assistant chief constable Sean White allowed him to retire on a full pension. Riordan told Newsnight he "strongly refutes any allegation that he acted with anything other than professionalism and integrity".
Chief constable Jacqui Cheer of Cleveland police said that she supported White, who was also a friend of Riordan's. "In smaller police forces senior police officers often make decisions about officers who work for them or with them. ACC White strongly refutes the claim that his decision was influenced or based upon anything other than the facts and evidence presented to him at the time of the decision making process."
Cheer added that the IPCC was still investigating matters related to Watson and declined to comment further.
Watson said that the size of the settlement demonstrated the urgent need to reform Cleveland police, which has been dogged by accusations of impropriety for years.
"What sticks in my throat is that millions of pounds have been wasted of taxpayers' money at a time of supposed austerity when public services are closing down hand over fist in Middlesbrough. Millions of pounds wasted and not one police officer held to account," he told Newsnight.
In October 2012, Sean Price was sacked as chief constable for gross misconduct after he was found to have lied about his role in a recruitment matter and to have instructed a member of staff to lie.
In March 2013, deputy chief constable Derek Bonnard was also sacked for gross misconduct and in February 2013 assistant chief officer Ann Hall was suspended amid an investigation into alleged misuse of public funds.