Tony Pulis has lost his appeal against an arbitration ruling that he must pay Crystal Palace €3.77 million. Following his departure from the club in 2014, he was found to have deceived a Premier League managers’ arbitration tribunal.

The West Bromwich Albion head coach left his post as manager at Selhurst Park less than 48 hours after their opening game of the 2014-15 season against Arsenal following a dispute over a €2 million “survival” bonus he was due for saving Palace from relegation. Palace owner Steve Parish agreed to pay Pulis the bonus more than two weeks before it was due, but then demanded that he return it after Pulis’s sudden and unexpected departure just two days later.

In March, the Premier League’s mediation panel found in favour of Palace and Parish, with Pulis ordered to return the bonus and pay a further €1 million in legal costs and damages for breach of contract. That decision was appealed by Pulis, but a ruling from the Commercial Court last week dismissed his appeal and ordered him to pay liquidated damages for €1.5 million as well as €2.27 million damages “for deceit”.

Details of the dispute have emerged in a written ruling published by the judge on Monday. Pulis alleged that there had been “serious irregularity” in the panel’s initial decision, which was taken under the FA’s Rule K arbitrations, a method of resolving disputes without going to court, which usually ensures confidentiality. However, Judge Michael Burton dismissed Pulis’s appeal after upholding the panel’s verdict that he had made two fraudulent misrepresentations.

The first related to a claim that Pulis had assured Parish he was committed to the club and would be staying until at least August 31st, 2014, when the bonus was due to be paid. He had told Palace that he urgently needed the money early so that “he could buy some land for his children”, but Sir Michael found there was a “lack of evidence” to support this claim.

Heated meeting

Pulis had also alleged that a “heated players’ meeting” (HPM) took place on August 8th, but the mediation panel ruled that it had, in fact, taken place on August 12th, the day he received the payment. That was despite oral testimony to the contrary from Palace players Lewis Price and Stuart O’Keefe, although this was dismissed by the judge due to evidence provided by Parish that he had not been at the training ground, including his presence at a hairdresser’s on the day in question.

“The arbitrators set the oral evidence for the claimant against the following,” read the ruling. “First the evidence of Mr Parish, the chairman, in the following paragraphs. In paragraph 45 the evidence of Mr Parish is recorded that the HPM could not have taken place on 12 August as the claimant claimed, since he, Mr Parish, was not at the training ground on 12 August.

“But so far as Mr Parish is concerned, the arbitrators set out in paragraphs 56, 57, 62, 63, 64 and 78 to 79 the evidence which was adduced as to Mr Parish’s movements on 12 August, and the supportive evidence of taxi fares, of telecommunications evidence called as expert evidence, and the hairdressing salon at which he attended on the relevant morning when the HPM is said to have occurred, and the arbitrators were persuaded by that evidence.”

The original ruling found that Pulis’s standards of conduct had “been shown to be disgraceful”. That was referenced in Sir Michael’s final decision, which said he had “reached a consequential conclusion that it was appropriate in the circumstances to make an award of indemnity costs because of their conclusions as to the conduct of the claimant.”

The judge said he had analysed Pulis’s complaints about the arbitrators’ decisions and concluded that his challenge should be dismissed. He said he would enforce the damages awarded by the arbitrators. Sir Michael said the arbitration panel had heard evidence behind closed doors.

He said he had also analysed Pulis’s challenge at a private hearing, in line with judges’ normal policy. But Sir Michael said he thought it appropriate that his ruling should be made public.

– Guardian service