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DENVER—The Denver City Council is meeting Monday to consider paying $40,000 to settle a lawsuit brought by a bystander who was injured in a police shooting outside a nightclub in July 2010.

Diamond Demmer is alleging negligence, battery, assault and other claims.

The discussion comes a few days after Denver’s Civil Service Commission upheld the firing of officer Robert Fitzgibbons, who fired the bullets that hurt Demmer. Fitzgibbons was fired last year for having unauthorized military tracer bullets in his rifle when he fired at an armed suspect.

The investigation found police were justified in their use of force, but that Fitzgibbons had used unauthorized ammo.

Bullet fragments from two of the rounds hit Demmer in the legs and torso.

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