The former Wallaby coach Greg Smith is suing the Australian Rugby Union (ARU) for A$500,000 claiming it left him with no option but to resign in August, three months before the end of his contract.
An ARU spokesman said yesterday that Smith was seeking $200,000 from his salary package and a further $300,000 for damages.
Smith lodged his legal action in the New South Wales state Industrial Relations Commission on Tuesday.
"This is most unfortunate and an unnecessary action by Greg Smith," ARU chief executive John O'Neill was quoted as saying in The Sydney Morn- ing Herald yesterday "It will be vigorously defended by the ARU."
The case is due for mention on November 13th.
Smith resigned three days after Australia's shattering 6122 loss to South Africa in the last Tri-Nations match in Pretoria in August. He had earlier been told by Australian rugby officials that he no longer had the support of the ARU board.
Smith had been contracted until the end of the season, including next month's Wallaby tour of Argentina, England and Scotland.
Former ACT Brumbies coach Rod Macqueen was named as Smith's replacement on September 10th.
Smith is currently considering his future in rugby. "It's a matter of finding something suitable," he said. "I think England would be the place for me because with the (other) European clubs, communication might be too difficult."