Let me try a different tack. I am not a lawyer so bear with me. My understanding is a settlement carries no precedent. A judgment however can create precedent. IMHO the only outcome that has any real meaning is a judgement against the officers they have to pay themselves. Anybody want to opine on that likelihood of that happening in this case?
In the case of Racine, we did not settle, we received a judgment.
As Doug points out:
Precedence is not created by just any old court decision. Search on "legal precedent".
At Federal District Court, decisions are not published and are not binding precedent. How much "weight" do they hold? From a legal binding precedent standpoint "not much" From a persuasive precedent standpoint "depends who you ask".
From a legal standpoint its "persuasive" precedent. Other courts, other judges can look at it (though its not binding) and consider it (though its not a published decision, so they may not even be able to find it) and decide something totally different. Appellate court begins to establish binding precedent in the "stare decisis" sense of precedent.
In the case of Racine, the precedent set was more of a regional awareness for other municipalities that unlawful arrest given the facts of that case resulted in a judgement against Racine. IANALBWHTOR (I am not a lawyer but we have them on retainer) but its my understanding that you won't likely see "Wisconsin Carry v. City of Racine et al" in future case law as its a Federal District Court Decision which is non-binding legal precedent and an unpublished decision.
What you SHOULD see is that other municipalities who see the news media stories regarding the case will be on notice that they face similar repercussions for similar unlawful actions of their officers.
Of course, as Madison demonstrates, not all municipalities are deterred.
I will get you a specific answer to your question regarding what, and how you can get an individual officer to have to pay out of pocket for their unlawful conduct while they are performing their duties under the authority of the department they work for.