Western United vehemently denies claims made by the club's former team manager that he was allegedly bullied by head coach Mark Rudan.
The ex-employee has initiated court action and is seeking $120,000 in compensation plus penalties from the owners of Western United.
He alleges he faced persistent bullying from Rudan, which made him mentally ill.
The former team manager left his post at the club in Ferbruary this year.
He has lodged a claim of unlawful dismissal in the Victoria's Federal Circuit Court.
Rudan was appointed coach of Western United for their inaugural A-Legue season in May last year.
The 44-year-old left Wellington Phoenix to join the new Victorian outfit.