A discrimination lawsuit against Sea Isle City has been settled. The city is going to pay $550,000 to Dorthea Waters-Rice, her son, and her granddaughter. They say that the girl was not allowed in a school play because of her race and that he had racial slurs used against her by teachers in 2004. The lawsuit claimed that police filed false charges against her because she complained. The lawsuit payment is the settlement from the police department. Legal action against the school board and teachers remains pending.