Lansford Borough begins paying a $230,000 federal lawsuit settlement to a former part-time police officer this month.

The first payment of $100,000 owed to Gilbert Diaz is due today, according to the terms of the settlement approved by council last month.

The remaining $130,000 will be divided into three equal payments of $43,333.33 due at the end of this year, and again in June and December 2027.

Diaz, who worked as a part-time police officer for about six months, claimed the borough denied his due process rights when he was removed from the police schedule without a hearing.

Diaz sued the borough, and Councilmen Joseph Butrie and Jack Soberick, and former council members George Gilbert and Jennifer Staines, who voted against holding the hearing in August 2025.

Also named as defendants in the suit were former Mayor Hugh Vrablic and police Sgt. Shawn Nunemacher.

Insurance did not cover the borough for the lawsuit, and the first payment will be paid out of the general fund for now, Council President Joe Genits said this week.

The borough will also be paying for legal costs incurred defending the suit. The final costs aren’t known yet.

However, the borough will not be paying for legal fees for Diaz, whose resignation from the borough will be effective upon final payment of the settlement.

Genits has said that Diaz is not eligible to return to work as a police officer in the borough, which was confirmed this week. He is also not entitled to insurance or other benefits as an employee of the borough while he waits for the settlement payments.

The borough also agreed to give Diaz a neutral reference for future employment, according to the settlement release.

Diaz also agreed to withdraw his application for police chief, Genits said. The move should clear the way for the borough to resume its search for a new chief, he said.

The borough has been without a police chief for more than a year following the resignation of Kyle Woodward, who left the borough for another job opportunity.

Diaz also agreed not to talk about settlement to the news media or on the Internet, as part of the agreement.