Espanola, NM (AHN)-The family of a third-grader who was handcuffed and jailed after misbehaving at school will receive $221,000 from the city and its insurer to settle a lawsuit.

The then 8-year-old Jerry Trujillo was sent to the school counselor's office after he hit another child with a basketball in August 2004. The juvenile citation for disorderly conduct says Jerry then "got out of control and refused to go back to class."

In a bizarre turn of events, after police were summoned, Jerry was booked into the city jail, dressed in an orange jumpsuit and placed in a holding cell while adult inmates in a nearby cell taunted him. He was released to his parents a half hour later.

According to the report, the family will receive $85,000 initially, with the remainder of the settlement to be paid over several years for Jerry's education and college fund. He now attends a private school.