Sinnott's solicitors, Russell Jones & Walker, also claim Vale failed to meet a legal deadline last Friday to try and resolve the matter, but Vale chairman Bill Bratt insists he has attempted to contact Lee without any success.
Paul Daniels, of the legal firm, said they have been left with no option but to go ahead with proceedings for breach of contract. He said: "We gave the club a clear time frame until Friday to resolve this matter and they did not even bother to reply. It is untrue to suggest that the club has tried to resolve this matter. Since Lee's departure from PVFC he has not been contacted by any board member of the club and, as stated, they did not even reply to our last letter."
Vale chief Bratt said in The Sentinel: "With the credit crunch and money being taken out of the club through various avenues, if we were to pay the lump sum it would be another body blow. It wouldn't put us into administration, but it would cause financial difficulties."
Sinnott himself added: "I am particularly upset by the suggestion that I am somehow being 'greedy' to ask for payment of the sum we all agreed I would be paid if asked to leave. That is a grossly unfair suggestion. I have also never rejected being paid this partly in instalments."