Former Everton boss Carlo Ancelotti is suing the club in the English High Court.
His claim relates to “general commercial contracts and arrangements” and will be heard in the commercial court.
Ancelotti left Everton in June of 2021 before re-joining Real Madrid.
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Brentford have paid a club record 25-million euro to Freiburg for Kevin Schade.
The Germany international forward joined the Premier League club on loan in January, going on to make 19 appearances.