The lawyer for two Upper Hutt teenagers who were illegally arrested, strip-searched and held in a prison cell for 36 hours, says negotiations with police for compensation are looking positive.
The 14 and 16 year old girls were arrested in January last year, however a judge later ruled their arrest was unlawful and threw out the charges.
They had been accused of attacking two other girls and stealing a wallet.
Their lawyer, John Gwilliam, says negotiations are progressing well and he hopes his clients' compensation claims will be resolved in the next couple of months.
He says although the girls' families have launched High Court proceedings for damages, they hope to avoid going to court.
The Independent Police Conduct Authority and police are still completing their investigations into the arrests.