Crystal Palace chairman Simon Jordan has won a case against the club's former manager Iain Dowie.
Iain Dowie was appointed Charlton boss after leaving Palace
Mr Justice Tugendhat ruled Mr Dowie lied when he negotiated his way out of his contract with the club and joined arch-rivals Charlton on 22 May 2006.
Mr Dowie's contract stated that if he left to join another club, Crystal Palace would receive £1m.
The question of whether the club is still owed £1m or another amount will be decided at a later court hearing.
The club said it would still claim £1m on the basis that it lost the chance of compensation because of Mr Dowie's lies.
"It's a good day for football. A judgement has been found in favour of contracts," Mr Jordan told the BBC News website.
"The allegations made were not put forward in as dignified a manner as I would have wanted but I'm delighted that they were proven.
"It's been a long hard slog."
Mr Jordan said he waived the £1m clause in a compromise agreement out of goodwill because Mr Dowie said he wanted to be closer to his family in Bolton.
Mr Justice Tugendhat, at the London High Court, ruled Mr Dowie was freed from his contract on the basis of "fraudulent representations".
When he left Palace, Mr Dowie had told the club he had not contacted Charlton and had no present intention of joining them, the court heard. Mr Dowie, who is now managing Coventry City, had told the court in a statement that the case was "without merit".
However, the judge refused to quash the compromise agreement and resurrect the £1m compensation clause.
Mr Dowie said he was pleased the judge had rejected Palace's request to have the compromise agreement annulled.
"I am naturally disappointed that the judge has ruled against me on the other issues raised in this first phase of the case," he said.