Hudlow claims he was wrongfully terminated and suffered damages as a result of Mayor Hines' actions.
According to the complaint, the City Attorney cited a statute that gives Hines the power to appoint and remove all department heads, but the suit claims that Hudlow's position did not fall under that category.
The suit cites another statute that says a two-thirds majority vote by the city council is required to remove the city treasurer from office.
Hudlow was fired from his position by Hines on May 14, 2012 after he refused to resign.
In a "Personnel Action Report" released to the media, Hines listed six reasons for Hudlow's termination including "insubordination, intimidation, lack of decorum and failure in ethics.
Hudlow claims he did nothing wrong and that the information in the "Personnel Action Report" is either false, misleading or taken out of context.
The suit claims that in distributing that information to the media and to other individuals with whom Hudlow had done business as city treasurer, he suffered humiliation, mental distress and harm to his business reputation, impeding his ability to find other employment.
Hudlow is seeking financial damages for loss of income, pain and suffering as well as punitive damages.
The suit also demands a trial by jury.
Hudlow was appointed City Treasurer in 2002. He took his first oath of office in January 2003 and was reappointed in 2007 and again in 2011.