Updated: 06/16/2015 6:30 PM | Created: 06/16/2015 11:24 AM
By: Elizabeth Reed, KOB.com and Chris Ramirez, KOB Eyewitness News 4

An LGBT group that claimed their members faced discrimination at a Denny's restaurant in Deming, New Mexico has resolved their complaint with the franchise owner.

Last July, members of Deming Pride visited the Denny's location after a gay pride parade. A Deming Pride leader told KOB that many group members were dressed in formal pageant wear, including some of the men and transgender people at the table.

Legal documents state the waitress told them she would not serve the group because, in her words, they were "fags and faggots." Deming Pride also said the server referred to a transgender person as a "boy with tits."

Members of the group filed a discrimination complaint with the New Mexico WorkForce Solutions Department, demanding a public apology and a $20,000 donation to Deming Pride.

View: Settlement Demand Letter

On Tuesday, the ACLU of New Mexico announced Denny's would donate $13,000 to Deming Pride and provide $3,250 to one of the members who said she was verbally abused by the server. 

Jim Mathieu, the local franchise owner and operator of the Denny's restaurant, said he would also provide his employees with extra training on non-discrimination and confirm that company discrimination policies comply with state law.

"We are very pleased to have resolved this matter for our clients," said Brian Moore, cooperating attorney for the ACLU of New Mexico, in a statement. "It is clear to us that Denny's is committed to ensuring that all people are welcomed in their restaurants."

"Denny's does not tolerate any discrimination in our organization, and we take any claims to the contrary very seriously," Mathieu said in the statement. "While we disagree with the specifics of the incident, our priority is on ensuring our guests are heard and therefore we worked diligently with Deming Pride and the ACLU of New Mexico to reach this resolution for all. We wish the best for our guests who were involved in this case."