Matheis asserts that he began noticing retaliation from the city in the form of a city investigation about use of his city-owned car in April 2010. The city later issued a notice of intent to discipline on Oct. 27, 2010.
"He was a squeaky wheel, and … they decided to axe him …," Aitken said.
In his lawsuit, Matheis also claims that the city violated the firefighter's procedural bill of rights when it disciplined him with a demotion to fire captain, a reduction in pay and a 45-day suspension, according to court records.
In April 2010, the city launched an investigation into Matheis' use of a city-owned Chevy Tahoe after receiving a bill for $26,000 in fines for not paying fees on the Foothill (241) Toll Road, according to Daily Pilot archives.
Matheis cited the city's examination of his personal finances during the investigation as a violation of his rights, as well as citing that the city was aware of the alleged misuse of the city-owned vehicle more than one year before disciplining him, according to court records.
"He was very up front" about his use of the city vehicle, Aitken said. "His particular conduct had been authorized at the time by the chief — Chief [Steve] Lewis."
Matheis retired from the Fire Department Jan. 14 of this year, he said in court documents. He worked for the city since July 1980.
Newport Beach City Attorney David Hunt said the city was justified in its actions.
"We don't agree with Mr. Matheis," Hunt said. "We don't believe this suit has merit. The facts of the situation support the city's actions."
In a previous interview with the Daily Pilot in December, city spokeswoman Tara Finnigan said that Matheis paid the fines personally and the issue was resolved from the agency side.
Matheis is seeking unlimited damages from the city.
The City Council is set to discuss the lawsuit in a closed-session meeting with Hunt on Tuesday.