Keegan is demanding payment in full of the remaining three-and-a-half years of his deal - worth around £9million.
And THAT has been the problem with supposedly "interested parties" offering his job back should they buy out the club.
Some suggested it was Mike Ashley he was taking to court, but NUFC must be involved as they employed him ... and how can he return having just taken £9m in compensation?
The 57-year-old left Newcastle in acrimonious circumstances after claiming that his authority over transfer dealings had been undermined by managing director Derek Llambias and executive director (football) Dennis Wise.
He claims that his return to the club in January 2008 was made on the proviso that he would enjoy full control over first team affairs.
However, when his desire to keep James Milner was overruled by the club's hierarchy and the transfer deadline day recruitment Xisco and loan signing Ignacio Gonzalez was made without his consent, Keegan believed that his position had become untenable and left the club.
Newcastle United have declined to comment and it remains to be seen if they will make a counter claim over breach of contract.
Mike Ashley's last known contact with Keegan was on September 12 when he attempted to persuade him to make a swift return.
NEWCASTLE'S SEASON SO FAR:
EVERTON 2 NEWCASTLE UTD 2 (Taylor, Duff)
Given, Taylor, Coloccini, Cacapa,Jose Enrique (Bassong 39), Geremi (Ameobi 75), Butt, Guthrie,N'Zogbia, Owen, Duff.
Subs Not Used: Harper, Xisco, Edgar, Doninger, Donaldson.
NEWCASTLE UTD 1 BLACKBURN R 2 (Owen pen)
Given, Bassong, Taylor, Coloccini, Cacapa, Geremi (Ameobi 71), Butt, Duff, N'Zogbia (Edgar 82), Xisco, Owen.
Subs Not Used: Harper, Tozer, Doninger, Donaldson, Ranger.
(Carling Cup)NEWCASTLE UTD 1 TOTTENHAM HOT 2 (Owen)
Given, Geremi, Taylor, Coloccini, Bassong,Cacapa (Edgar 72), Butt, N'Zogbia, Owen, Duff (Xisco 72),Martins.
Subs Not Used: Harper, Ameobi, Tozer, Doninger, Donaldson.
WEST HAM UTD 3 NEWCASTLE UTD 1 (Owen)
Given, Edgar (Bassong 59), Taylor, Coloccini,N'Zogbia, Geremi, Cacapa (Gonzalez 81), Butt, Duff, Owen, Xisco.
Subs Not Used: Harper, Ameobi, Tozer, Doninger, Donaldson.
NEWCASTLE UTD 1 HULL CITY 2 (Xisco)
Given, Edgar (Bassong 68), Taylor, Coloccini,N'Zogbia, Geremi, Butt, Guthrie, Xisco, Owen,Ameobi (Gonzalez 61).
Subs Not Used: Harper, Cacapa, Danquah, Doninger, Donaldson.
ARSENAL 3 NEWCASTLE UTD 0
Given, Coloccini, Jose Enrique (Bassong 44), Taylor,Gutierrez (Barton 89), Guthrie, Butt, Beye (Edgar 89),N'Zogbia, Owen, Ameobi.
Subs Not Used: Harper, Tozer, Donaldson, Ranger.
(Carling Cup) COVENTRY CITY 2 NEWCASTLE UTD 3 AET (Dann og, Milner, Owen)
Given, Beye, Coloccini, Bassong, Jose Enrique,Milner, Geremi (Owen 75), Butt, Guthrie, N'Zogbia, Gutierrez.
Subs Not Used: Harper, Taylor, Edgar, Tozer, Donaldson, Ranger.
NEWCASTLE UTD 1 BOLTON WANDERERS 0 (Owen)
Given, Beye, Taylor, Coloccini, N'Zogbia, Milner,Butt, Guthrie, Gutierrez, Martins (Owen 53), Duff (Geremi 46).
Subs Not Used: Harper, Jose Enrique, Bassong, Smith, Edgar.
MANCHESTER UNITED 1 NEWCASTLE UTD 1 (Martins)
Given, Beye, Taylor, Coloccini, N'Zogbia, Milner, Butt, Guthrie, Gutierrez, Duff, Martins.
Subs Not Used: Harper, Jose Enrique, Bassong, Smith, Geremi, Edgar, Donaldson.