A country tennis club that missed out on funding under the federal government’s botched sports grants program is taking on the Australian Sports Commission in landmark legal action expected to pave the way for other clubs who believe they were dudded in the process.

Law firm Maurice Blackburn, acting on behalf of a tennis club in Victoria’s north-east, demanded the club’s application to build new courts under community sports grant program be reassessed or the club will take further action in the Federal Court.

The scandal forced the resignation of Senator Bridget McKenzie from federal cabinet after she awarded the Wangaratta Clay Target Club a $36,000 grant when she was sports minister and didn't declare she was a member.

Beechworth Lawn Tennis Club president Andy Carr is threatening legal action against the Australian Sports Commission. Credit:Simon Dallinger

Maurice Blackburn principal Josh Bornstein said applications rejected by the community sports infrastructure grant program should be reassessed because the minister's interference in the program was unlawful.