Former manager Alan Curbishley has won his case for constructive dismissal against West Ham.
A Premier League managers' arbitration tribunal upheld Curbishley's claim after the 51-year-old left the top-flight club in September 2008.
Curbishley resigned after defenders Anton Ferdinand and George McCartney were sold against his wishes.
The tribunal, which dismissed a counterclaim by the Hammers, has yet to decide on the amount of compensation.
"I am obviously delighted with this result," said Curbishley.
"I very much enjoyed my time at West Ham and never wanted to leave, but on joining the club I insisted that my contract contained a clause confirming that I would have final say on the selection of players to be transferred to and from the club.
"The club completely ignored my contract when selling Anton Ferdinand, and when George McCartney was then sold, the club having given me assurances that no players would be leaving the club after the sale of Anton Ferdinand, I had no alternative but to resign.
The findings of the tribunal demonstrate the critical importance of respecting contracts
League Managers' Association chief executive Richard Bevan
"My authority and integrity were undermined and my position was made untenable. I now wish to put this entire matter behind me."
The former Charlton boss launched his case after the Hammers counterclaimed for the cost of employing Curbishley's successor Gianfranco Zola and his assistant Steve Clarke.
"Naturally we are delighted with the outcome for Alan but, at the same time, sorry that he wasn't able to continue at West Ham United, a club that has played such a prominent part in his professional career both as a player and manager," said League Managers' Association chief executive Richard Bevan.
"The findings of the tribunal demonstrate the critical importance of respecting contracts which need to set out the roles and responsibilities of the parties in clear and unequivocal terms."
Curbishley made 85 first-team appearances for West Ham during his playing career and rejoined the club as manager in December 2006, saving them from relegation in his first season.
In his first full campaign at Upton Park, Curbishley steered West Ham to a 10th-place finish in the Premier League.
The Curbishley ruling comes a month after former Newcastle manager Kevin Keegan won his constructive dismissal case against the Magpies.
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