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2014 Football Contractual litigations Partially Upheld English Appeal Procedure

Parties & Representatives

Arbitrators

President: Manfred Peter Nan

Decision Information

Decision Date: July 31, 2015

Case Summary

The case involves a dispute between Asociatia Fotbal Club Astra (the Club) and professional football player Laionel da Silva Ramalho (the Player), with FIFA as a respondent. The conflict arose from unpaid salaries and a fine imposed on the Player by the Club. The Player claimed EUR 24,000 in unpaid salaries for March to May 2012, while the Club argued it had already paid part of the amount and deducted a EUR 6,000 fine for alleged contractual violations. The fine was later ratified by the Disciplinary Committee of the Romanian Professional Football League (DCRPFL). The Player filed a claim with FIFA's Dispute Resolution Chamber (DRC), which ruled in his favor, ordering the Club to pay EUR 24,000 plus interest. The Club appealed to the Court of Arbitration for Sport (CAS), contesting FIFA's jurisdiction and the validity of the fine.

The CAS addressed three key issues. First, it confirmed the FIFA DRC's jurisdiction over international employment disputes unless an independent national arbitration tribunal was explicitly chosen. Second, it ruled that fines for contractual violations must respect the player's right to be heard and be ratified by a disciplinary body. Third, it stated that salary deductions for fines must be contractually stipulated. The CAS found the Club failed to prove the fine's procedural fairness or contractual justification, upholding the FIFA DRC's decision. The Club was ordered to pay the outstanding salaries with 5% annual interest, calculated from the due dates until payment.

The Club argued Romanian law should apply, while the Player and FIFA maintained FIFA regulations and Swiss law governed the dispute. The Sole Arbitrator determined FIFA's regulations were primary, with Swiss law as a subsidiary, due to the contract's lack of explicit Romanian law stipulation. The CAS also rejected the Club's claim that Romanian bodies had exclusive jurisdiction, as it failed to prove these met FIFA's standards for fair proceedings.

Regarding the unpaid salaries, the Player adjusted his claim to EUR 12,000 after acknowledging partial payments. The Club provided evidence of payments but failed to specify which months they covered. The Arbitrator found the Club's documentation insufficient, ruling the Player was entitled to EUR 11,863 in outstanding remuneration. The fine was deemed invalid due to lack of proper notification and procedural fairness, and the Club's attempt to offset it against the salary was rejected.

In conclusion, the CAS upheld the FIFA DRC's decision, emphasizing the importance of procedural fairness, contractual clarity, and proper documentation in disciplinary actions. The Club was ordered to pay the Player EUR 11,863 plus interest, dismissing all other claims. The ruling underscores the primacy of international sports regulations in cross-border disputes and the need for clear contractual terms.

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