Remy

Decisionofthe DisputeResolutionChamber passedon12October2023 regardinganemployment-relateddisputeconcerningtheplayerLoicAlexHubertRemy BY: CliffordJ.HENDEL(USA),DeputyChairperson MicheleCOLUCCI(Italy),member AlejandroATILIOTARABORELLI(Argentina),member CLAIMANT: LoicAlexHubertRemy,France RepresentedbyErcanSevdimbaş RESPONDENT: YukatelAdanaDemirsporA.S.,Türkiye I.Factsofthecase 1.On8February2022,theFrenchplayerLoicRemy(hereinafter:theClaimantorplayer)andtheTurkishclubAdanaDemirspor(hereinafter:theRespondentorclub)concludedanemploymentcontractvalidasfromsaiddateuntil31May2022. 2.On31March2023,theClaimantandtheRespondentconcludedasettlementagreement(hereinafter:thesettlementagreement)havingasobjecttheoutstandingremunerationderivingfromtheparties’previousemploymentcontract. 3.Pursuanttothesettlementagreement,theRespondentundertooktopaytheClaimantatotalofEUR218,000,brokendownasfollows: -EUR118,000dueon7April2023; -EUR50,000dueon3June2023; -EUR50,000dueon3August2023. 4.Inaccordancewithart.1.2ofthesettlementagreement,thepartiesagreedthat“iftheClubdoesnotpayanyinstalmentontime,theClubwillpayapenaltyofEUR30.000tothePlayerforeachpaymentnotpaidontheduedate.Inaddition,thepartieshaveagreedthatifanyinstalmentisnotpaidonduedate,alltheremainingpaymentswillbecomeduewithoutanynotice”. 5.Bycorrespondencedated20June2023,theClaimantputtheRespondentindefaultofpaymentofEUR130,000grantingadeadlineof3daystoinordertoremedythedefault. 6.Inthiscontext,theClaimantremindedtheRespondentthathavingthe3rdinstalmentbecomeduebyvirtueoftheaccelerationclausestipulatedunderart.1.2ofthesettlementagreement,afurtherpenaltyofEUR30,000wouldhavebeenimposedontheRespondentifthelatterhadnotcompliedwithitsfinancialobligationwithinthefollowing3days. 7.On23June2023,theRespondentpaidanamountofEUR100,000totheClaimant,andcommentedthefollowing: “Asyouarewellawarewehavepaidthefirstinstalmentamountof118.000Euro.However,wehavefailedtopaythesecondinstalmentonduetime.Howeverasoftodaywepayyouthesecondandthirdinstalmentstogether(duetime03.06.2023andduetime03.08.2023)totally100.000Euro(eachinstalment50.000Euro).Youcanfindthebankreceiptsontheattachmentofthee-mail.Youhavestatedthat,thereis 30.000Europenaltyoccursfromthelatepayment,wewouldkindlyliketostatethatthispenaltyclauseshouldbeacceptedasexorbitantandinvalid.Asyouknow,wehavesignedthesettlementagreementonthelastdayoflicensingofEuropeanCups.Sincewemadethefirstpaymentlate,wethinkwemadeupforourmistakebypayingthethirdinstalmentabout1,5monthsearly.Thereasonwearelateforthepayment aretheearthquake,theParliamentaryelections,presidentelectionsandtheproblematicofexchangeofforeignmoneycurrencies.” II.ProceedingsbeforeFIFA 8.On4August2023,theClaimantlodgedtheclaimathandbeforeFIFA.Abriefsummaryofthepositionofthepartiesisdetailedincontinuation. a.PositionoftheClaimant 9.AccordingtotheClaimant,theRespondentfailedtocomplywithitsfinancialobligationsderivingfromthesettlementagreement,namelywithrespecttothe2ndinstalment. 10.Inthiscontext,theClaimantheldthataccordinglytherelevantaccelerationclausestipulatedunderthesettlementagreementhadbeentriggeredaswellasthepenaltiestheretoconnected,hencetheRespondentshouldhavepaidatotalofEUR130,000withinthedeadlinegrantedbytheClaimant,correspondingtothe2ndand3rdinstalmentsandtherelevantpenaltyforthedelayinthepaymentofthe2ndinstalment. 11.Inthisrespect,theClaimantaddedthat,havingtheRespondentfailedtopaypartoftheabove-mentionedamount,alsothepaymentofthe3rdinstalmentcouldnotbedeemedasfullyrealizedwithintheduetime,henceafurtherpenaltyofEUR30,000shallbeimposedontheRespondentinlinewithart1.2ofthesettlementagreement. 12.Accordingly,therequestforreliefbytheClaimantwasofEUR60,000asoutstandingpenaltyfeesplusa5%interestperannumrunningfrom3June2023. b.PositionoftheRespondent 13.Initsreply,theRespondentarguedhavingactedingoodfaithfirstbypayingthe2ndinstalmentjust3daysafterthedefaultnoticesentbytheClaimanton20June2023,andsubsequentlybypayingtherelevant3rdinstalment45daysbeforetheduedatestipulatedunderthesettlementagreement. 14.Inthisrespect,theRespondentstatedhavinghadseveralfinancialproblemsduetothecatastrophicseismiceventsthathadoccurredintheAdanaregionduringthespringof2023,whichledtoaconsequentparalysisoftheTurkisheconomy. 15.Consequently,theRespondentheldthatitshouldnotbeheldliableforanexiguousdelayinthepaymentofthe2ndinstalmentonly,especiallyasitcompliedinteraliawiththerelevantaccelerationclauseunderthesettlementagreementbypayingthe3rdinstalmentimmediatelyafter. 16.Subsidiarily,theRespondentprayedthatifanypenaltyhastobepaid,itsamountshallbereducedbecauseexcessiveascorrespondingtomorethan50%ofeachremaininginstalment.Inthisrespect,theRespondentrequestedthatthepenaltyfeeshallbereducedtoatotalof10%ofthedelayedamounts. 17.Finally,theRespondentrequestedthatifthepenaltyclausewasnotconsideredexcessive,saidpenaltyshallbeimposedonlywithrespecttothe2ndinstalment,asthiswastheonlyonepaidlate,whilethe3rdinstalmenthasbeenpaidmorethanonemonthinadvance,incompliancewiththerelevantsettlementagreement. III.Considerati