Jim Woodbury says he was dropped from deputy chief to battalion chief in January in retaliation for exposing an ethics scandal in the fire marshal's office.
The Seattle Times reports the mayor's office had no comment on the lawsuit filed Monday in King County Superior Court. Woodbury is seeking lost wages and could ask to be reinstated as a deputy chief.
The Seattle Ethics Commission backed up Woodbury's complaint in March. A fire marshal who demanded concert passes and failed to bill for services at Seahawks games resigned last month.
The mayor issued a rebuke to Fire Chief Gregory Dean for his handling of Woodbury's complaint.
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