U.S. District Judge Thomas Golden on Tuesday ruled there's evidence the city of Allentown showed a disregard for public safety by hiring former Officer Brett Guth.
State police say Guth ran a red light while responding to a call, causing the crash that killed 4-year-old Daviay Legrand in May 2007.
In his ruling, Golden noted Allentown hired Guth despite a history of speeding offenses and related charges.
The attorney for Legrand's mother says the decision means there's no cap on the damages a jury could award.
Allentown's solicitor says the city is considering an appeal.