PLYMOUTH businesses can learn from the sudden resignation of England football manager Fabio Capello, a city lawyer says.

Jonathan Kitchin , an associate in Foot Anstey's dispute resolution team, said the Italian's decision to quit just four months prior to the European Championships highlights some of the issues that come to light when a senior figurehead leaves an organisation.

He said that when negotiating senior exits, embarking on the right strategy and legal tactics with reference to the bigger financial and commercial picture is crucial.

Financial considerations and the likelihood of a case ending up before a tribunal or the High Court should also be taken into account.

"The combination of a hefty benefits package and a six-month notice period or a fixed term contract can quickly give rise to a six- or seven-figure claim," Mr Kitchin said. "This is the reason why football managers can receive large pay-outs.

"In the business world, a claim can mushroom in value if a minority shareholding needs to be bought out, or the exercise of share options come into play."

He said large-value claims, or those involving complex corporate arrangements, are typically pursued in the High Court.

This is also the place to litigate if "foul play" is suspected, such as if seeking the return or destruction of confidential data, obtaining an account of profits for opportunities unlawfully diverted, or enforcing restrictive covenants.

"These remedies require the use of emergency injunctions to deliver up information and restrain conduct," Mr Kitchin said.

"Injunctions are reserved for the most business critical of issues, being the most Draconian and high-impact civil remedy available."

He said a senior executive may also have statutory rights to pursue a claim in the Employment Tribunal for unfair dismissal or discrimination.

"A procedural defect or loaded comment could give the departing director negotiating leverage," he said. "However, making Employment Tribunal and High Court claims at the same time requires extremely careful legal advice as pursuing one may rule out claiming in the other.

"This is important when compensation in the Employment Tribunal is capped at £25,000 for breach of contract, £72,300 for unfair dismissal and the cap removed for discrimination."

The legal issues at stake and their financial parameters will influence whether a court or tribunal is chosen, Mr Kitchin added.

But he stressed practical issues such as minimising disruption to the workforce, preserving customer or supplier relationships and managing potential damage to the brand, are also important.

"When broaching discussions, consideration needs to be given to the choice of broker in order to establish a confidential and constructive dialogue from the outset," Mr Kitchin said. "Usually, any out-of-court settlement will be recorded in a settlement or compromise agreement."

Mr Kitchin said the "pressure points" behind Mr Capello's resignation will undoubtedly come to light in due course.

But he said it would be interesting to know if Mr Capello was entitled to choose the England captain, in what circumstances the FA could "pull rank" and how both parties were supposed to deal with the media, given the ex-manager's interview on Italian TV.

"His employment contract or service agreement would set out how both parties are supposed to conduct themselves," Mr Kitchin said.

He said that in such cases arguments over conduct set the scene for negotiations, as each party will try to build up a picture that the other is the "wrongdoer".