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Colchester United win as Norwich City breach regulation 20 - Ellisons Solicitors advise

03 June 2010

Ellisons Solicitors have led Colchester United to yet another employment law win as the "U's" prove that they are no pushover when it comes to playing by the rules. In 2006 the Directors and Management of the Club took the bold step of obtaining a High Court injunction to ensure that all parties adhered to the correct protocol in terminating manager Phil Parkinson's contract, which still had almost a year to run, and happily after almost a further week's negotiation with Hull City, a sum of in the region of £400,000 compensation, plus the recovery of legal costs, was agreed.

Some four years later, Ellisons Partner Graeme Wallington was once again onside when Norwich City, having lost 7-1 to its East Anglian rivals on the opening day of the season, chose to breach Regulation 20 and illegally poach Colchester United's manager Paul Lambert and two members of his team.

This week, an independent Disciplinary Commission found in favour of Colchester United and the following statement was released by the Football League:

"A Football Disciplinary Commission has ruled that Norwich City must pay Colchester United £425,000 in compensation following their recruitment of manager Paul Lambert and his backroom team in August 2009.

"Norwich City were also fined £200,000 for breaching regulation 20 which forbids clubs from inducing other club's employees to break their contract of employment. The Commission suspended £125,000 of this fine for two years from the date of breach, payable in the event of a further breach of Regulation 20 by the club within that period, subject to the discretion of the tribunal dealing with any such breach.

The League Regulations permit either club to appeal."

Ellisons' Senior Partner, Peter Powell who is also a director of Colchester United and on the Football League's board of directors commented on the win:

"As a Solicitor and a Club director, I am delighted that this judgment sends out a warning to Clubs who think that the League's rules can be ignored. Norwich City clearly thought they could poach a rival team's manager without adequate negotiation or compensation; Colchester United and the independent commission have shown they could not. Whilst of course I respect the verdict of the independent commission, I share our chairman Robbie Cowling's view that whilst the compensation is very fair, we would have preferred a points deduction which would have been an even stronger deterrent for clubs who are tempted to follow Norwich City's lead in flouting the fundamental employment law principles of the game."