DANVILLE - The town’s insurer will pay $100,000 to settle claims by two former Danville police officers who quit and later sued over the way Police Chief Wade Parsons was managing the police department.

According to settlement agreements signed last month, Argo Group will pay $40,000 each to Jason Pond and Ryan Furman. Of that $40,000, $30,000 will cover general damages and $10,000 will go toward attorney’s fees. 

In addition to the $40,000, the town will pay each ex-officer another $10,000 in back pay through normal payroll, but will be reimbursed by Argo Group. 

While the lawsuit was settled, the agreement states that the town “denies liability, wrongdoing and responsibility for the litigation allegations.”

A copy of the agreement was provided to the New Hampshire Union Leader in response to a request made under the state’s Right-to-Know Law.

Pond, a former corporal, and Furman, who was a sergeant, quit in December 2016 and filed the lawsuit against the town in Rockingham County Superior Court last year.

They claimed Parsons created a “toxic” environment and that they had complained about the leadership of the department since 2014. They made several allegations in their suit regarding complaints about favoritism, officer safety, and questionable hiring practices.

The town denied many of their claims.

Jason Major, the lawyer who represented Pond and Furman, said Thursday that there were significant “question marks about what was going on in town” when the two left the department.

He said the fact that the case was settled suggests there was some merit to their complaints.

“Any time a defendant settles it means that they understand there is some risk if the case goes to trial,” Major said.

Major said Pond and Furman had hoped to stay on the Danville police force until retirement.

“Those guys were both there for a really long time,” he said. “It was very upsetting for them to have to leave under those circumstances.”

Brian Cullen, the town’s attorney, could not immediately be reached for comment Thursday afternoon.