Arrows to Compensate Diniz After Losing Appeal

Arrows will have to compensate former driver Pedro Diniz after their appeal against a court ruling was dismissed on Tuesday, the Formula One team said.

Arrows to Compensate Diniz After Losing Appeal

Arrows will have to compensate former driver Pedro Diniz after their appeal against a court ruling was dismissed on Tuesday, the Formula One team said.

The Court of Appeal in London upheld a ruling made last February that allowed Brazilian Diniz to walk away from Arrows and join Sauber at the end of 1998.

The Commercial High Court had last year endorsed a finding by the International Automobile Federation (FIA) in 1999 that Diniz's contract with Arrows "had been validly terminated in accordance with its terms."

Arrows owner Tom Walkinshaw will have to pay approximately 500,000 pounds ($710,600) in compensation to Diniz, although the team declined to reveal the precise sum.

"Arrows is obviously disappointed at the outcome of its appeal against the decision," a spokesperson said.

The team have not said if they will take their case to the House of Lords, the final appeal court in Britain. Diniz, 31, ended his career as a driver in 2000 after leaving Sauber and later became a major shareholder of the troubled Prost Grand Prix.

He withdrew as a major shareholder of the Guyancourt-based operation last year before former world champion Alain Prost's team was declared bankrupt last month.

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