The Court of Arbitration for Sport (CAS) ruled the Bermuda Olympic Association (BOA) should compensate show jumper Jill Terceira after the organisation banned her from representing Bermuda for three years.
Terceira received the ban for two breaches of conduct at the Pan American Games in Toronto in 2015.
She was given a one-year ban for wearing traditional red Bermuda shorts instead of a skirt during her horse's veterinary inspection and a three-year ban for an alleged security breach at the Athletes' Village.
Terceira took the case to CAS, who upheld the violations but said that the bans were disproportionate.
They ruled the BOA should compensate Terceira for the funding she would have gained as an Elite A athlete, around $45,000 (£34,763/€40,210), as reported by the Royal Gazette.
Terceira represented Bermuda at both the Beijing 2008 and London 2012 Olympic Games.
The BOA Executive Board released a statement which claimed the the sanctions had been made entirely by the Disciplinary Committee, but that it would review its policies and procedures.
“The process and the original decisions determined by the BOA’s constituted Disciplinary Committee and Appeals Committee were independent of the BOA Executive Board members,” it read.
“It was these decisions by the BOA’s independent judiciary committees upon which the CAS ruling was based.
"The sole role of the BOA Executive Board was to refer the matter to both committees for adjudication.
“The BOA accepts the CAS ruling for upholding the disciplinary breaches committed by Ms Terceira which were the subject of the BOA’s original referral to the Disciplinary Committee.
“This was the first time that the BOA has felt it necessary to do so in respect of any athlete representing Bermuda.
“The guidance stipulated in the CAS ruling has provided the impetus for the BOA Executive Board to streamline various policies and procedures should the unfortunate need arise to address such matters if they happen again in the future.”
The statement also acknowledged CAS's findings that the BOA had retroactively applied a revised constitution during its proceedings against Terceira.
It read: “The BOA acknowledges there appeared to be a breakdown in communication whereby its General Assembly comprising the National Sport Governing Bodies approved new appeal regulations under the revised BOA constitution but there was a failure to effectively communicate those changes so that all stakeholders, particularly the athletes, were well informed.”