Robert Walsh, who was attacked by Michael Silvestri, testified at his federal lawsuit trial that the attack on New Year’s Eve in 2003 was the culmination of nearly two years of anti-gay slurs from his fellow firefighter.

Spokeswoman Kate Ahlers says the city’s law department is pleased that the matter has been resolved.

Walsh’s lawyer did not return calls for comment, but his co-counsel also confirmed the settlement.

Former firefighter Michael Silvestri pleaded guilty to assault in 2006 after hitting Walsh, and served a year in jail. He previously told the New York Post, “I am not a gay basher. I have plenty of gay friends – I’m the most liberal guy you’d ever meet.”

In his ruling, Anello rejected a motion from the the firefighters’ attorney for an injunction barring the city from from requiring participation in parades.

Charles LiMandri had argued that pride parades are a political event whose purpose is to advocate for LGBT rights including “the controversial concept of gay marriage” and that the department improperly used the four to support a political cause. He said the order is a violation of the firefighters’ constitutional right to free speech.

In rejecting the motion, Anello cited rulings by other courts that held that when citizens enter government service they must accept some limits on their constitutional rights.

In his written ruling, Anello said the appearance by firefighters at the parade was part of the San Diego Fire Department’s “community building activities,” and was required under state and municipal anti-discrimination laws.

Anello also noted the argument was moot, since the city has already amended its policies to make future participation in parades voluntary.

The ruling came after a jury deadlocked last week on a sexual harassment suit brought by LiMandri on behalf of the four firefighters who claimed they had become emotionally distressed as a result of their treatment by crowds along the parade route last year.

The jury of six men and six women became hopelessly deadlocked after four days of deliberations.

LiMandri had urged the jury to award $500,000 to $1 million to each firefighter.

City Attorney Michael Aguirre said the lawsuit “was about greed” and declared the jury’s deadlock a total victory.

Last month, one of the firefighters told the court that he was sexually taunted by crowds on the street and has been undergoing counseling to try to cope with the aftermath of the experience.

Charles Kane testified that participating in the parade has affected his family life and that he has been ridiculed by some at his fire station.

“I felt confused, embarrassed, used, abandoned by my leadership … I had to fight through it,” he testified.

But under cross-examination by city attorney Michael Aguirre, Kane acknowledged that the fire hall is in the largely gay Hillcrest neighborhood, and that he actually lives in the area.

Anello has scheduled a retrial to begin on Jan. 16.