The injury itself happened off-camera during the actual broadcast, where viewers only saw Sid lying in the ring with his leg at a disgusting angle. The next night on Monday Nitro on TNT, WCW made the somewhat controversial call to air the injury footage from various angles.
WCW's assets were sold to WWE two months later after a deal with an Eric Bischoff-led group that had been announced around the time of Sin fell through when TBS & TNT canceled WCW's television programming. Eudy's contract was not one of the assets WWE bought, as various top WCW wrestlers were technically contracted to other divisions of Time Warner in what was believed to be a creative bookkeeping move.
Over the next few months, his pay was reduced by the surviving Universal Wrestling Corporation. This was a standard move in WCW if a wrestler couldn't work (it happened most infamously to Bret Hart), but obviously he couldn't work anyway once the company was sold and WWE didn't try to buy out his contract. He was fired in June.
After an explanation of how Eudy felt he was entitled to his full pay because he was coerced into executing the move that he injured himself on, the details of his claim are explained:
"Eudy testified on deposition that he told Laurinaitis, the WCW employee who blocked the moves for the January 14, 2001 event, that he did not want to perform the final move, in which he was to jump from the second rope and land on his opponent. He testified that he said he was 'just not a rope guy,' being a big man. He was concerned about getting his timing right so he did not kick his opponent in the face, having just returned to the ring after shoulder surgery the year before.
But, Eudy said, Laurinaitis kept telling him he needed to do the move, eventually handed him a written script, and told Eudy that if he took the move out, Laurinaitis would have to redraft the script. Then Eudy admitted that he agreed to perform the move, thinking he needed to prove himself to the company's new owners because he had been unable to work for some time due to previous injuries.
Eudy argues that the actions of WCW made it impossible for him to perform his side of the contract, and therefore he was entitled to all of his compensation..."
Sid was obviously right to be apprehensive: He'd never done anything like that before, so it was a bad idea, and it had disastrous results. I have no idea why Laurinaitis thought it was a good idea, but it was so far outside of Sid's wheelhouse that it is one of many things that can be used to impugn his abilities as a pro wrestling executive.
Eudy's claim of unjust enrichment (over WCW benefiting from the injury footage and a disability insurance policy they took out on him) was dismissed because WCW had full rights to the footage and the insurance policy reimbursed them for his pay while he was unable to wrestle for them. The court upheld the previous dismissals as well, and that was the end of the case.