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Castle Hills Settles With Former Councilwoman for $500,000 in First Amendment Case

The deal follows a Supreme Court ruling that revived Sylvia Gonzalez’s retaliatory‑arrest lawsuit.

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Former Castle Hills councilwoman Sylvia Gonzalez and the city have agreed to a six-figure settlement following a federal lawsuit that made its way up to the Supreme Court in 2024.

Overview

  • City council approved the agreement this week, providing Gonzalez $500,000 and closing the city’s part of the litigation.
  • The city says the payment will not come from municipal funds, and local reporting indicates its insurance will cover the payout.
  • Settlement terms require Castle Hills to work with the Texas Municipal League on a statewide training about First Amendment retaliation, which Castle Hills staff must complete.
  • Gonzalez agreed to dismiss claims against the individual defendants, and the city did not admit liability.
  • Her 2020 civil-rights suit stemmed from a 2019 arrest over a citizen petition; charges were dropped, and in 2024 the U.S. Supreme Court eased evidentiary rules for proving retaliatory arrests and sent her case forward.