The case between Mirko Poledica, a Serbian professional football player, and KP Legia Warszawa, a Polish football club, was adjudicated by the Court of Arbitration for Sport (CAS) following a dispute over the unilateral termination of Poledica's employment contract. The contract, signed in June 2004, was set to run until June 2007, with a total remuneration of EUR 320,000. In July 2006, the parties agreed to a termination arrangement allowing Poledica to leave if he found a new club, with a compensation of EUR 50,000. When Poledica failed to secure a new club by September 2006, he sought to continue under the original contract, but the club terminated it unilaterally, citing alleged disloyalty and poor performance.
Poledica appealed to FIFA's Dispute Resolution Chamber (DRC), which ruled in his favor in June 2007, ordering the club to pay EUR 60,000 for unjust termination. The DRC found no valid grounds for the termination, as the club failed to prove any breach by Poledica and acted preemptively to avoid future claims. The case was then brought before CAS, which upheld the DRC's decision, confirming the termination was unjust and deliberate. CAS ruled Poledica was entitled to the full outstanding salary under FIFA regulations, as no mitigating circumstances existed. Additionally, CAS awarded an indemnity of one month's salary (EUR 9,166) under Swiss law, as the termination was a deliberate breach. The total compensation amounted to EUR 100,003, including interest from the termination date.
The CAS panel rejected the club's arguments, including claims of deception by Poledica, emphasizing the straightforward nature of the contract and the club's responsibility in signing it. The decision reinforced the principle that clubs cannot unilaterally terminate contracts without just cause and must honor contractual obligations. The ruling partially upheld Poledica's appeal against the DRC's earlier decision, modifying the compensation amount and setting aside the DRC's award. The case underscores the importance of fair treatment in employment contracts within professional football and the legal consequences of unjustified termination. The final award was issued on June 11, 2008, concluding the dispute with a clear message on contractual adherence and player rights.