Leicester City's new owners believe they will escape the legal action being threatened by former midfielder Dennis Wise.
Wise was sacked by the club following a pre-season incident in which defender Callum Davidson suffered a fractured cheekbone.
The former England international, now playing with Division One rivals Millwall, had threatened to sue the club for an estimated £2.3 million sterling loss of earnings.
But New Fox plc, who replaced Leicester City plc as owners of the club following almost four months in administration, are adamant they cannot be held liable for the decisions of the previous regime.
A club spokesman said: "Leicester City plc are no longer owners of the club. In fact that company no longer exists. It's difficult to see how one could take court action against a company which no longer exists".
PA