Brian Horton is sueing Manchester City for around pounds 200,000 following his sacking 48 hours after the end of the season. The former Maine Road manager's legal team began High Court proceedings against the club yesterday for a severance payment they claim is due.
Francis Lee, the club's chairman, said: "I am happy to let both sets of lawyers reach an amicable agreement on Brian's compensation. Whatever figure they come up with will be paid."
A legal spokesman said Horton, appointed manager of Huddersfield Town last week, felt he had no alternative but to pursue the matter in the courts.
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