The city of San Diego is suing Carolyn Y. Smith, who was fired as the president of the Southeastern Economic Development Corp. last month.

City Attorney Mike Aguirre filed this complaint earlier today. The complaint alleges that Smith breached her employment contract “by approving and awarding compensation to herself and others without authority to do so, and in excess of the budget approved by both the board of directors of SEDC and the San Diego City Council and in excess of the amount set forth in her employment contract.”

A second cause of action in the complaint alleges that Smith breached her fiduciary duty “by approving unauthorized compensation to herself and others.”

SEDC’s board of directors fired Smith at last month’s board meeting. The scandal over hidden bonuses and extra compensation paid to Smith and others was spurred by an investigation by

Aguirre said the lawsuit also asks Smith to provide a full accounting of all payments made to herself and to other SEDC employees.

“We believe there was around $265,000 in unauthorized payments made,” Aguirre said.

Aguirre said he will bring the suit before the City Council for approval next Tuesday in a special meeting of the council.


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