Davies maybe within his rights to take legal action against PNE
1 June 2006

A PRESTON employment law solicitor has warned Preston North End F.C (PNE) that Billy Davies may well be within his rights to take legal action against them.

Billy Davies, manager of PNE, is heading for a potentially damaging showdown with Chairman Derek Shaw, after stating that he is currently seeking legal advice because PNE allowed him speak to Charlton Athletic but blocked talks with Derby County.

Chairman of Preston, Derek Shaw, is not willing to let Derby open talks with Davies despite him being keen to see what is on offer at Pride Park.

Derek Shaw has made it clear that he is protecting the interests of PNE. However, Sadiq Vohra, a partner and head of employment law at MWR Solicitors, said PNE may be encroaching on Billy Davies’ rights as an employee of the club. He said:

“The legal relationship between Billy Davies and PNE is governed mainly by the contract between them. Whilst I am not party to this contract, I would expect it to put Billy Davies under a legal duty of fidelity to PNE. The contract may also contain express provisions to prevent him from seeking work with competitors.

“However such a clause may not be legally enforceable if it is not reasonable and can be construed as unlawful restriction of trade. It is interesting and unusual for PNE to allow him to enter talks with Charlton Athletic but not Derby County. It may be that PNE are exercising their legal discretion under the contract.

“However this may also be interpreted as PNE exercising its contractual rights in an unreasonable and so possibly in an unlawful manner.”