It claims they broke civil rights laws pertaining to religious freedom and the first amendment in denying the restaurant chain a permit to operate in Chicago's Logan Square community.
This happened after Chick-Fil-A's CEO said he does not support gay marriage.
Emanuel has said the restaurant does not share Chicago's values.
Chick-Fil-A released a statement saying: "The Chick-Fil-A culture and service tradition in our restaurants is to treat every person with honor, dignity and respect, regardless of their belief, race, creed, sexual orientation or gender."