Tuite Files $1.5-Million Claim With City : Pension: His attorney says the move is the prelude to a lawsuit over $335,000 that City Council refuses to release.

Former Community Redevelopment Agency chief John Tuite, whose pension benefit payments were blocked by the Los Angeles City Council, filed a $1.5-million claim Thursday against the city and the CRA for breach of contract, “great emotional distress,” attorney fees and interest on the unpaid $335,000 portion of his pension.

Council members Wednesday had expressed anger that Tuite had negotiated a lucrative buyout deal before resigning under pressure last April.

Tuite’s attorney, Gloria Allred, called the council action “a kangaroo court session filled with unsubstantiated accusations, smears, insinuations and innuendoes.”

“Certain members of the City Council have left us with no recourse,” Allred said at a news conference held moments before filing the claim with the city clerk’s office. “The filing of this claim is the first step that must be taken before a lawsuit can be filed.”

Councilman Zev Yaroslavsky, Budget and Finance Committee chairman who has led the effort to block the payment to Tuite, said, “I think I have an obligation not to give away public money--I won’t do it.”

Tuite, 58, headed the urban renewal agency for four years until he was pressured into retirement last December amid complaints that the CRA favored downtown redevelopment over homeowners, small business and the homeless.

Last Dec. 28, the agency’s board of directors approved the buyout for Tuite in exchange for his stepping down 18 months before his contract expired.

Tuite was paid $433,000 plus $39,000 in vacation pay when the agreement was signed, and was to have received the $335,000 in a lump sum by June 28.

But by that date, the agency found it had exceeded its budget and was forced to go to the council for permission to transfer money from another fund, which gave the council jurisdiction over the matter.

Angered by the agency’s deal, council members on Wednesday used a loophole in city law that allows them to oversee CRA fund transfers to block final payment to Tuite.

“What experienced administrator would want to take this job, or any other important post in the city, after they’ve seen this?” Tuite said at the news conference Thursday.

“Regrettably, I have no recourse left except to fight for what’s mine.”