The NRL has lost yet another attempt to see Cronulla boss Dino Mezzatesta gain eligibility for the NSW Rugby League's board.
On Tuesday, the NSW Court of Appeal tossed the Australian Rugby League Commission's challenge to a NSWRL decision blocking Mezzatesta from participating in its February board elections.
Mezzatesta was excluded from the board because of a seeming conflict of interest due to his role as the CEO of Cronulla Sharks.
Directors George Peponis and Nick Politis both quit in protest and the ARLC withdrew funding as a result. The NSWRL was accused of breaching an agreement under which it was given exclusive rights to manage the NSW State of Origin team.
The NSWRL then filed a NSW Supreme Court lawsuit, leading to Justice Michael Ball ruling in May that Mezzatesta was wrongly excluded. However, this did not mean the election was invalid and had to be reheld, the judge said.
After this, funding to the state body for the 2022 season was eventually restored with the organisation receiving the majority of what it had asked for.
On Tuesday, three judges from the Court of Appeal confirmed Justice Ball's decision, finding that NSWRL was not in breach of its contractual obligations to the ARLC by blocking Mezzatesta .
"In my opinion, the primary judge was correct in concluding that the NSWRL was not in breach ... and that this was so whether or not the NSWRL Board, which was undoubtedly functioning, had been validly appointed," wrote Chief Justice Andrew Bell, supported by the other two appeal judges.
The ARLC could not show exactly why the NSW body's board had failed in its duties because of the incorrect election process, the chief judge added.
The court ordered that the national body pay NSWRL's costs of the failed appeal.
The decision comes as the ARLC continues its battle with clubs and players over collective bargaining agreements and funding arrangements.
The dispute has long lingered in the NSWRL boardrooms, with the latest attempt to remove directors Geoff Gerard, Kevin Greene, William Johnstone and Terry Brady failing when an emergency board meeting was called by two clubs last Friday.
If successful, the move would have placed the NSW body into administration.
Acting NSWRL board chairman John Anderson said that while Tuesday's judgment confirmed the results of February's election, he was disappointed the matter had to go to court.
"It remains a matter of regret for us that we were forced to go to court to resolve the issue in the first instance, but such an important component of our existence was under direct threat," he said.
"The Supreme Court ruled in our favour earlier this year, and we are pleased that decision has been upheld today, with the Court of Appeal confirming that we have not breached the agreement relating to our State of Origin obligations."
"We hope that we will finally be able to put this behind us and work together with all stakeholders for the benefit of rugby league across the state."
