Leeds Rhinos have been informed by the RFL Operational Rules Tribunal they do not have to pay Hull FC compensation for Luke Briscoe.
Briscoe rejected a new contract offer at the KC Stadium in September 2011 to join the reigning Stobart Super League champions.
Leeds announced the capture of Briscoe on a three-year deal later, with Hull then claiming compensation from his new club over the move.
However, the tribunal determined that under operational rule C1:3:12(a) Hull had relinquished their entitlement to compensation because the terms of the new contract they had offered Briscoe were less favourable than his previous deal.
Briscoe, who is a product of the Featherstone Lions amateur club, has yet to feature for the Rhinos during the 2012 campaign.