Leicestershire have agreed an out-of-court settlement with their former chief executive David Smith over his claim for constructive dismissal.
Former Warwickshire batsman Smith resigned last June citing alleged interference from then chairman Neil Davidson in team selection for his decision. Davidson also resigned after the end of the season.
Smith’s case was due to be heard at an employment tribunal in Leicester starting on March 28 but the club have now announced that they have reached “a mutually agreeable resolution” with him.
It is understood that the case was handed to the ACAS arbitration settlement organisation earlier this week and both sides have agreed not to make any further public comment.
Davidson, who was due to appear as principal witness for Leicestershire at the employment tribunal, is still pursuing his legal action against the club to reclaim £109,000 he loaned them last summer to pay a VAT bill and ease their cash-flow problems.
Leicestershire claim that Davidson volunteered to pay the bill and that he also made a £71,500 contribution towards the first year’s salary of new captain Matthew Hoggard.
The case is due to go to a mediation hearing in Leicester next week in an attempt to reach a settlement without going to court.
Meanwhile, Leicestershire have re-elected former county batsman Paul Haywood as chairman.
Haywood, a member of Leicestershire’s 1972 Benson and Hedges Cup-winning side, took charge at Grace Road following Davidson’s resignation last August.
Leicestershire have also co-opted local businessman Philip Bland, who has taken charge of the club’s commercial operations, to the board of directors.