The NSW Rugby League's failure to follow its election processes in excluding Cronulla's CEO from the board did not invalidate this year's election results, a court has found.
The findings resolve a heated spat between NSWRL and the Australian Rugby League Commission over the membership of the state body's board, specifically the exclusion of Dino Mezzatesta in February this year.
Mezzatesta was excluded from the NSWRL's board because of an apparent conflict of interest created by payments he received as the CEO of the Cronulla-Sutherland Rugby League Club.
On Friday, Justice Michael Ball found Mezzatesta was wrongly excluded from becoming a metropolitan director because any conflicts as CEO were the same as those he had because of his directorship role at Cronulla.
"Any possible conflict arose because of the duties Mr Mezzatesta owed to Cronulla. But he owed those duties as a director. It is unclear how the nature and scope of those duties relevantly differed because he was also an employee of the club," the NSW Supreme Court judge wrote.
Despite this irregularity, the court rejected the ARLC's arguments that the election was invalid and needed to be reheld.
The judge pointed out that two other directors Geoff Gerard and Nick Politis were validly elected and the state rugby body had a functioning board that seemed to be fulfilling its duties.
The ARLC had not challenged the election of Gerard and Politis, and could not point to any way in which the NSWRL had failed to meet its obligations.
Politis resigned from his position as director at the conclusion of the February board meeting.
Because of the court's findings, the ARLC is not entitled to invalidate a services agreement between the national and state entities.
The court declined to determine whether or not the ARLC had breached its contractual obligations to NSWRL by choosing to withhold funding since the board meeting.
The state organisation is still able to file future legal proceedings seeking damages against the national organisation if the dispute over payments cannot be resolved.
