Brian Welsh was the manager of Cowdenbeath FC. His contract stated that, save for a situation of gross misconduct, neither party could terminate his contract without first agreeing (1) the notice period to be served and (2) compensation or a settlement figure if applicable.

When Cowdenbeath were relegated Mr Walsh was dismissed. The club indicated that it wished to agree terms: Mr Walsh sued for £90,000, being his outstanding salary for the remainder of his contract.