Sauber boss Monisha Kaltenborn has admitted she was shocked to hear she could face prison time in the team's legal battle with Giedo van der Garde.
Van der Garde and Sauber spent the Australian Grand Prix weekend in court, as the Dutchman claimed he was entitled to drive for the team.
In the end, both parties decided to talk and reached an agreement.
"When you sit in an Australian court and hear the word prison, that's a shock," Kaltenborn was quoted as saying by Swiss newspaper Sonntagsblick.
Kaltenborn, whose team has had to pay 15 million Euros to van der Garde, admitted she made errors with the handling of the situation.
"Yes, I made mistakes. I was too trusting and I was punished bitterly," she added.
"Courts do not judge by moral principles. For them, only written agreements apply without regard to the other circumstances."
Kaltenborn also revealed the saga could have taken yet another twist in Melbourne had van der Garde managed to obtain his F1 superlicence.
"If he had received a licence from the FIA, he would have tried everything to drive," Kaltenborn added.