Parramatta Eels take NRL to court over penalties

THE five officials — including CEO John Boulous — had sought urgent legal action against the proposed penalty to deregister them as a result of the salary cap breaches.

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FIVE Parramatta Eels officials have secured a temporary injunction that “restrains” the NRL from carrying out the deregistration slapped on them as a result of the salary cup scandal.

Justice Rowan Darke has made an order this evening “until further order and without admission by the defendants and reserving all rights which the defendant may have against the Parramatta NRL club, restrain the defendant by its employees, agents and servants from acting upon, implementing or carrying into effect the final sentence of the notice issues to the plaintiffs on May 3, 2016.”

Daniel Anderson.

CEO John Boulous.

The five officials — including - CEO John Boulous, football operations manager Daniel Anderson and current chairman Steven Sharp — had sought urgent legal action against the proposed penalty to deregister them as a result of the salary cap breaches.

The club has not lodged a court action against the $1 million fine and docking of points accumulated in the season so far.

Justice Darke has adjourned the case until Friday, when it is expected a day for a hearing will be set.

Earlier Lachlan Gyles SC, counsel for the NRL, said his clients had engaged in “procedural fairness 101” by allowing the club five days to respond to the penalty.

The Eels staff at the centre of the salary cap scandal took urgent legal action against the NRL over the penalties handed down this morning.

It understood the action was urgently sought following a meeting the Eels board had with NRL CEO Todd Greenberg at 7:30am.

It was announced the morning that the NRL would fine the Eels $1 million, dock them all 12 competition points, strip them of the 2016 Auckland Nines title and sack five club officials as a result of systemic salary cap rorting.

Eels players emerge from meeting finding out the verdict. Picture: Phil Hillyard

Parramatta Eels chairman Steve Sharp is among a group taking action against the NRL.

The Daily Telegraph understands the club is seeking an injunction because the punishment and sacking causes them to be unable to carry out their functions under the Corporations Act.

Justice Darke noted the matter is being brought “with some urgency”.

Arthur Moses SC, acting for the suspended Eels officials, asked the court if there had been “a breach of procedural fairness” in handling of the matter.

He has sought for an injunction, preventing the NRL “from acting upon or treating as valid” their notices until the case can proceed to a full hearing as early as next week.

“Prior notice has to be given before a suspension is imposed,” Mr Moses told the court.

The court heard that at this morning’s meeting, the club was told of the penalties and impending public statement concerning it.