NEW YORK — Lawyers for the city and for people arrested during Republican National Convention demonstrations last summer reached a settlement on April 15 that will cost the city more than $230,000.

Gail Donoghue, a senior attorney in the city’s Law Department, said the settlement meant those arrested gave up their right to try to establish that the city was in contempt of court.

State Supreme Court Justice John Cataldo, who had held the city in contempt after police failed to release hundreds of demonstrators, dismissed a hearing on the issue that would have been held yesterday.

Under terms of the settlement, the city agreed to pay $150 to each of 108 people who were in custody on Sept. 2, 2004 — most of whom were arrested Aug. 31 — for a total of $16,200, plus costs and attorneys’ fees of about $215,000.

Donoghue said the agreement did not preclude the city or the arrested individuals from going ahead with civil lawsuits on other grounds. For example, an individual could claim physical injury during an improper arrest.

On April 12, the head of the New York Civil Liberties Union said videotapes helped hundreds of protesters prove their innocence after convention arrests.

A few people claimed at the time that they were not even protesters, but just passing by when they got caught up in the arrests.

Police had 560 people in custody on Sept. 2 as a result of arrests during the GOP Convention demonstrations. Norman Siegel, a lawyer for the demonstrators, said the city likely would have to make payments to other people arrested during the convention.

“We feel that this is the first chapter in many chapters, and the city of New York will have to pay money to people that we believe had their civil rights violated during the Republican National Convention,” Siegel said at a news conference outside the courthouse to announce the settlement.

“We would hope that the city would learn from what happened during August 2004,” Siegel said, “and that people who engage in First Amendment protest acts are never held for more than 24 hours in the future.”

Siegel repeated his charge that city officials planned to hold the demonstrators until President Bush had attended the convention and left town.

Donoghue said the city “acted in complete good faith in its efforts to comply with the court’s order. The city did nothing wrong, and there is no finding or admission of wrongdoing by any city official in the settlement agreement.”

During the convention, 1,806 people were arrested on charges such as disorderly conduct and obstructing justice. Of those cases, about 90% had been dismissed, ended with acquittals or with adjournments in contemplation of dismissal, Siegel said.

Martin Stolar, another lawyer for the protesters who joined Siegel at the news conference, said a videotape proved a police officer deliberately made false statements against one of the arrested individuals when he filled out an official report.

Stolar said it was “outrageous” that no perjury charges had been filed against the officer. He called on the police commissioner and the Manhattan district attorney’s office to investigate and to discipline that officer.