ABC13 first reported the feud in February, when Yanas claimed she took the flag down because it extended onto her parents' property for years.
Santa Fe police arrested Yanas on charges of trespassing and resisting arrest, but those have since been dropped.
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According to a statement by the Galveston County Criminal District Attorney's office, there was insufficient evidence to proceed with filing a criminal charge against Yanas.
"Therefore, we declined to proceed with any prosecution arising from her arrest," the statement read in part.
Yanas' attorney will speak at an afternoon press conference on Saturday to address her case.
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