During testimony in the non-jury trial last year, Arpaio said he was against racial profiling and denied his office arrested people because of the color of their skin.
The sheriff, who won re-election to a sixth term in November, has been a lightning rod for controversy over his aggressive enforcement of immigration laws in the state, which borders Mexico, as well as an investigation into the validity of President Barack Obama's U.S. birth certificate.
The lawsuit was brought against Arpaio and his office on behalf of five Hispanic drivers who said they had been stopped by deputies because of their ethnicity.
The plaintiffs, which include the Somos America immigrants' rights coalition and all Latino drivers stopped by the sheriff's office since 2007, were seeking corrective action but not monetary damages.
Arpaio has been the subject of other probes and lawsuits. In August, the U.S. Attorney's Office in Arizona said it had closed a criminal investigation into accusations of financial misconduct by Arpaio, and it declined to bring charges.
A separate U.S. Justice Department investigation and lawsuit relating to accusations of civil rights abuses by Arpaio's office is ongoing.
Arizona has been at the heart of a bitter national debate over immigration since Republican Governor Jan Brewer signed a 2010 crackdown on illegal immigration.
The federal government challenged the crackdown in court and said the U.S. Constitution gives it sole authority over immigration policy. The U.S. Supreme Court, however, has allowed to stand the part of the law permitting police to question people they stop about their immigration status.
(Reporting by Tim Gaynor and David Schwartz; Editing by Cynthia Johnston, Eric Walsh, Toni Reinhold)
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