Former Springboks star Joel Stransky was awarded £151,025 by a High Court judge against Bristol Shoguns for breach of a contract of employment for a coaching post.
Mr Justice Eady, sitting in London, awarded the sum which included damages and interest to the 1995 South African World Cup winner against defendants Bristol Rugby Limited.
Bristol were also landed with a costs bill, unofficially estimated at around £200,000, although the figure to be paid has yet to be assessed.
Stransky, a former fly-half at Leicester and a member of the Tigers' coaching staff, was not in court for the ruling.
The judge said that Stransky claimed damages against Bristol Rugby Limited "for the alleged repudiatory breach of a contract of employment, said to have been entered into on April 10, 2000, in a Bath restaurant called Le Beaujolais".
"The defendant denies the existence of any such contract," he added.
However, the judge said he found that there was a contract concluded on April 10, and that acts by the defendant on June 26 and June 27 "constituted a repudiatory breach".
Mr Justice Eady said he had concluded "in the light of all the evidence, that a deal was done on April 10".
Jonathan Crystal QC, for Bristol, in urging the judge to grant permission to appeal, said: "This is an important matter which could have a widespread effect throughout sport, and should be reviewed by the Court of Appeal."
But the judge refused permission, and gave Crystal 28 days in which to approach the Court of Appeal directly.
He also ordered the defendant to make an interim payment of £50,000 to Stransky within 14 days.
Stransky won 22 caps for the Springboks between 1993 and 1996, scoring 240 points, and dropped a match-winning goal during extra-time when South Africa beat New Zealand 15-12 in the 1995 World Cup final.
Stransky said later in a statement: "I am very grateful to my legal team who have helped me through this difficult situation - almost making it pleasant.
"I am now considering options for my future career."
His lawyer, Paul Quain of Charles Russell Solicitors, said: "We are delighted to have advised Joel Stransky in this successful claim.
"It is a timely reminder for many people, particularly those involved with 'big names', that a verbal contract is as legally binding as a written contract.
"You don't need a piece of paper if you have shaken on it."
Stransky's case was that the repudiation occurred at the end of June 2000 when Bristol Rugby Club decided not to engage his services.
The judge said that when asked about his motive for bringing the High Court proceedings, "Mr Stransky told me that it was partly because of the embarrassment and humiliation brought about by this rejection and partly also because he thought it right that a bargain should be honoured".
The judge said that because of a knee injury it became apparent in 1999 that Mr Stransky would be unable to go on playing and would thereafter be confined to coaching.
The judge said that much was disputed in the litigation, but it was clear that in February 2000 there was a meeting of the directors of Bristol Rugby at which it was suggested that Bristol should employ a person to coach the club's back division.
The judge said Bristol were hoping to find a "high quality performer".
Stransky, he said, was "left on a string for three months until it was decided at the Bath Spa Hotel on June 26 that he would not be taken on".
Bristol Shoguns owner Malcolm Pearce was "flabbergasted" with the decision.
"We are flabbergasted by the decision," said millionaire Pearce, who is club owner, chairman and chief executive. "We will now consider our options."