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CAS 2018 A 5693 (CAS)

Why it matters

This case clarifies that just cause for termination can exist even if only one salary is overdue, if the club's conduct shows bad faith and loss of trust. It also limits joint and several liability of the new club when the player was not used and the old club induced the breach.

Summary

The case involves a dispute between Riga FC and FC Partizan regarding the termination of player Cédric Gogoua Kouame's contract with Partizan. Mr Kouame terminated his contract on 7 October 2016, claiming Partizan owed him salaries for July and September 2016 and housing allowances. Partizan argued only September's salary was overdue by a few days. The FIFA DRC found that Mr Kouame had just cause to terminate because Partizan failed to pay September's salary on time and did not respond to his notices. The DRC ordered Partizan to pay outstanding remuneration and the player to pay compensation for breach, with Riga FC jointly and severally liable. Both clubs appealed to CAS. The CAS Panel upheld the finding of just cause, emphasizing that Partizan's conduct, ignoring the player's complaints and benefiting from his departure, constituted bad faith. The Panel reduced the compensation from EUR 579,490 to EUR 102,490, reflecting Partizan's savings from not paying the player's salary and its own inducement of the breach. Riga FC's joint liability was maintained but limited to the reduced amount. The award highlights the importance of good faith in employment relationships and the principle that a club cannot profit from its own wrongdoing.

The detail

Parties: & 5694 Riga FC v. FC Partizan & FIFA

Case number: CAS 2018 A 5693

Outcome: The Panel upheld the FIFA DRC decision that Mr Kouame terminated with just cause, but reduced compensation for which Riga FC is jointly and severally liable to EUR 102,490.

Quantum: EUR 102,490

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP) 2015 edition; Swiss law subsidiarily

Issues in play: Whether a player had just cause to terminate his contract when only one month's salary was overdue for a few days, and whether the new club is jointly and severally liable for compensation.

Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗

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