The case before the Court of Arbitration for Sport (CAS) involved a dispute between Changchun Yatai Football Club and professional football player Jorge Samuel Caballero regarding the termination of an employment contract. The dispute centered on whether the club or the player had terminated the contract and whether there was just cause for termination. The club had stopped paying the player's salary after he suffered a knee injury in July 2010, which required surgery in Honduras. The player returned to China in October 2010 but later traveled back to Honduras. In January 2011, the club proposed mutual termination of the contract, but the player did not accept the offer. The player subsequently filed a claim with FIFA's Dispute Resolution Chamber (DRC), which ruled in his favor, ordering the club to pay outstanding salaries and compensation for breach of contract.
The club appealed the DRC's decision to CAS, arguing that the player had breached the contract by leaving for medical treatment without authorization and attending trials with other clubs. The player countered that the club's appeal was inadmissible due to procedural failures, including missed deadlines and unclear financial claims. The Sole Arbitrator, Mr. Efraim Barak, ruled that the appeal was admissible but limited the club's financial claims to those originally filed before FIFA. The arbitrator found that the club had failed to provide sufficient evidence to justify withholding the player's salary or to substantiate allegations of forgery and unauthorized leave. The arbitrator determined that the player had just cause to terminate the contract due to the club's persistent non-payment of salaries and lack of communication regarding his obligations.
The arbitrator applied the principle of "positive interest," aiming to compensate the player for the financial losses incurred due to the club's breach of contract. The player was awarded USD 250,000 for outstanding salaries from August 2010 to May 2011 and USD 125,000 for breach of contract, totaling USD 375,000 with 5% annual interest. The arbitrator dismissed the club's appeal and upheld the DRC's decision, emphasizing the importance of contractual adherence and proper communication between clubs and players. The case highlights the complexities of employment disputes in football and the legal framework governing such conflicts, reinforcing the need for clear evidence and procedural compliance in arbitration proceedings. The decision underscores the player's rights under FIFA regulations and the consequences of contractual breaches by clubs.