Short answer, no.
Well, the specific answer to your question is that YES you can sue. Anyone can sue. The issue is whether you have an issue for which the law provides a remedy and whether you can win under the laws that exist in your state.
On your facts, police apparently acting on warrant lawfully issued warrant, acting in good faith, when domestic violence was reported--that is your version of events, almost certainly the police have an even more strident version of events.
Also, Police enjoy qualified immunity. Judges and prosecutors are protected from liability for malicious prosecution by prosecutorial and judicial immunity. Your municipality also likely enjoys sovereign immunity in suit. That includes liability for libel and slander. Sorry to say, that dog won't hunt.
I did not read the cite you provided, recommend you consult with a WA attorney to determine if the facts and circumstances in Bender are analogous to your specific situation. Best of luck.
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You can sue, but the question is will you win? Cases against a city like this are hard (but not impossible) to win. You will need to consult with an attorney experienced in handling claims like this.