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2010 America's Cup

 
Wikipedia: 2010 America's Cup
33rd America's Cup
Date February 8–12, 2010
Defender Switzerland Société Nautique de Genève
Challenger United States Golden Gate Yacht Club
Winner TBA
Location Valencia, Spain

The 33rd America's Cup will be between current holder of the cup, Société Nautique de Genève defending with team Alinghi against Golden Gate Yacht Club, and their racing team BMW Oracle Racing. The 33rd America's Cup has been the subject of extensive court action and litigation surpassing in acrimony even the controversial 1988 America's Cup. The match will take place as a one-on-one Deed of Gift match in gigantic, specialized multi-hull racing yachts with no other clubs or teams participating.

When Société Nautique de Genève (SNG) successfully defended the trophy in the 32nd America's Cup they immediately accepted a challenge from Club Náutico Español de Vela (CNEV) a Spanish organization formed expressly for the purpose of challenging for the cup and keeping the regatta in Valencia. When SNG and CNEV published their protocol for the 33rd America's Cup challenge, there was widespread consternation over its terms, with some teams and yacht clubs calling it the worst protocol in the history of the event.[1]

Golden Gate Yacht Club (GGYC) filed its own challenge for the Cup and then filed a court case asking that CNEV be removed as Challenger of Record as being unqualified under the Deed of Gift. GGYC also asked that it be named as the rightful Challenger of Record, being the first club to file a conforming challenge.[2] As the legal proceedings progressed, SNG continued to work with the other teams on the protocol, and by December 2007 twelve challengers had met the entry deadline and were preparing to race in a multi-challenge 33rd America’s Cup.[3]

There followed a long and acrimonious legal battle,[4] with the New York Court of Appeals finally deciding on April 2, 2009 that CNEV failed to show that at the time it submitted its Notice of Challenge it was a "[c]lub fulfilling all the conditions required by" the Deed of Gift, [therefore] it does not qualify as the Challenger of Record for the 33rd America's Cup.[5]

The match is scheduled to take place in February 2010, in Valencia, Spain.

Contents

The Dispute

Regarding the Challenger of Record

Following its successful defense of the Cup on July 3, 2007, Société Nautique de Genève (SNG) accepted a challenge for the 33rd America's Cup from Club Náutico Español de Vela (CNEV), a newly formed yacht club, created for the purpose of challenging for the Cup. CNEV had no boats, no clubhouse, only four members (vice presidents of the Spanish Sailing Federation), and had never run a regatta of any type.[6] On July 5, 2007 SNG and CNEV released the protocols for the next Cup regatta. The protocol was the subject of much criticism, with some teams and yacht clubs calling it the worst protocol in the history of the event.[1]

The Golden Gate Yacht Club (GGYC) initiated legal action against SNG in the New York Supreme Court (the court of first instance) alleging violations of the Deed of Gift. (New York courts decide disputes regarding the terms of the Deed of Gift because the America's Cup is held under the terms of a charitable legal trust established under New York law). The suit alleged that CNEV did not meet the terms of the Deed of Gift as a legitimate yacht club that would qualify to be the challenger of record, in particular because it had never held an annual regatta, which, according to GGYC, was a requirement under the Deed of Gift.[2] At the same time, GGYC issued a challenge for the Cup.

Because of the precedent set in the 1988 America's Cup where the San Diego Yacht Club defended against a monohull yacht with a catamaran, any challenge that is not a mutual-consent challenge has to specify the largest multi-hull possible under the Deed of Gift, if it is to have any chance of winning. Consequently, GGYC specified its yacht as having a 90-ft. length-waterline, and 90-ft. beam.[7] However, GGYC also stated that they wanted "consensual negotiations in the spirit of the Deed of Gift toward a Protocol comparable in scope, and similar in terms, to that used for the 32nd America's Cup."

As the legal proceedings progressed, SNG continued to work with the other teams on the protocol, and by December 2007 twelve challengers had met the entry deadline and were preparing to race in a multi-challenge 33rd America’s Cup.[3] But despite extensive negotiations and proposals made by both sides, GGYC and SNG were unable to agree upon a mutual consent Protocol.[8][9]

The lawsuit therefore continued and the court ruled in favor of GGYC on November 27, 2007, holding that CNEV was not a valid challenger, and declaring GGYC the proper and legal challenger. SNG was instructed to meet GGYC's challenge under the Deed of Gift terms unless they could agree on other terms by mutual consent[10]. This order was confirmed on March 13, 2008[11]

SNG appealed the decision against CNEV, and on July 29, 2008, the Appellate Division of the New York Supreme Court 2008 reversed the lower court ruling in a 3–2 decision holding that the meaning of "having" was ambiguous.[12]

Pending the final outcome of that litigation, SNG had set a deadline of December 15, 2008 for entries in the 33rd America's Cup regatta. On December 8, 2008 GGYC sent a letter to SNG to inform them that GGYC would not submit an entry since it did not consider SNG's regatta “a legitimate America’s Cup” and vowed to focus on winning the legal case in the New York Court of Appeals.[13][14]

A number of organizations submitted amicus curiae briefs to the court. In particular, on December 31, 2008, the New York Yacht Club (NYYC), the oldest and longest holder of the America's Cup, filed a brief supporting GGYC's position.[15]

On April 2, 2009, The New York Court of Appeals in Albany, New York (the court of last instance) decided 6–0 in favor of GGYC, holding in particular that a yacht club could not qualify as Challenger of Record unless it had held at least one annual regatta prior to its challenge.[5]

Regarding the dates and the venue

After the April 2009 ruling GGYC said it would "immediately seek to negotiate with the Defender for a conventional, multi-challenger America’s Cup in monohulls." However SNG indicated that they would not negotiate for a multi-challenger regatta and would fall back to a default Deed of Gift match, that is three races over a 40- (first and third race) or 39-nautical mile (second race) course between GGYC's trimaran BMW Oracle Racing 90 and SNG's catamaran Alinghi 5. Indeed, despite various calls for negotiation,[16] it had been apparent for some time that the provisions of the Deed of Gift would likely govern the match, and, further, that the parties didn't agree on the interpretation of certain provisions of the Deed of Gift or of the court decision.

In March 2008, the parties had attempted to agree on dates for the races. SNG took the position that it was entitled to a 10-month period to prepare for the race and, because it was based in the Northern Hemisphere, the races could not take place until May 2009.[17] GGYC took the position that the 10-month notice period should run from the November 2007, when the court of first instance ruled that CNEV was not a valid challenger, so the races should take place in October 2008.[18] Despite various attempts, the parties were unable to agree on the dates and on May 12, 2008, the NY York Supreme Court issued an order setting the date at 10 months after that date.[19] The 10-month delay was held to have been suspended during the appeals process and was reinstated by the final April 2, 2009 decision of the New York Court of Appeals. However, SNG refused to accept a race in February, 2010, arguing again that the deed did not permit racing in the Northern Hemisphere until May.[20][21] GGYC forced a court session and, on May 14, 2009, the court ruled from the bench that that the race must take place in February 2010, unless another date was mutually agreed to.[4][22]

Though the date was now set, dispute persisted regarding the venue. SNG argued that the April 2, 2009 court decision specifying "that the location of the match shall be in Valencia, Spain or any other location selected by SNG, provided SNG notify GGYC in writing not less than six months in advance of the date set for the first challenge match race of the location it has selected for the challenge match races,"[23] allowed it to choose a venue in the Northern Hemisphere.[24][25][26] GGYC maintained that without mutual consent, the defender must specify a deed-legal venue, which in February would mean the Southern Hemisphere.[27] Under the terms of the Court order, if SNG did not specify a venue six months before the match, the venue would default to Valencia.

In August 2009 SNG announced that the event would be based in the Northern Hemisphere at Al Hamra Village[28] in the Ras al-Khaimah emirate of the United Arab Emirates.[29][30]

GGYC immediately replied that Ras al-Khaimah was not a Deed Legal Venue.[31][32][33] SNG maintained its position.[34] GGYC filed a motion in court to request "that the Court issue an Order directing that the 33rd America's Cup be held in Valencia, Spain, in February 2010, unless the parties mutually consent otherwise."[35] According to GGYC, Valencia was mentioned in the April 2 court order as an exception, because both parties had indicated that they agreed to Valencia. Unless GGYC agreed to some other location in the Northern Hemisphere, the race must take place in the Southern Hemisphere, because the venue must comply with the Deed of Gift. Indeed, said GGYC, the expression "or any other location" in the April 2 court order could not be interpreted literally, because it could not extend to a venue like the Colorado River or Walden Pond. Given that the literal meaning could not apply, the order must be interpreted consistent with the Deed of Gift.

On October 27, 2009, Justice Shirley Kornreich ruled from the bench that Ras al-Khaimah, United Arab Emirates was not a deed legal venue and that the race must take place either in Valencia or in a Southern Hemisphere venue.[36][37][38] SNG appealed[39] the decision to the Appellate Division of the New York Supreme Court, but the appeal was denied on December 15, 2009.[40]

On November 10, 2009, SNG wrote to the court stating that it would hold the race in February in Valencia, Spain.[41] Further, it published on the same day the Notice of Race.[42]

Regarding the rules of the match

On July 14, 2009 GGYC filed a motion with the court asking that SNG be found in contempt for changing the rules for the match in secret to allow them to build a boat with powered winches and moveable ballast which were allegedly illegal under the SNG rules that should apply to the race.[43] SNG filed a competing motion asking that GGYC be disqualified as a challenger if they did not produce a Custom House Certificate for their challenging yacht within 14 days, and it disputed the allegations made by GGYC, arguing that the use of powered winches and moveable ballast was common for high performance catamarans racing under SNG's rules, and that the April 2009 version of the SNG rules should apply, since it was only on that date that GGYC was recognized as Challenger of Record.[44]

On July 29, 2009, the court issued its decision regarding these matters.[45] The court refused to hold Alinghi in contempt. The court ruled that the Deed of Gift does not specify any restrictions on the construction of the yachts. Provided that the boats are propelled by sails, auxiliary power can be used for winches etc. Moveable ballast can also be used. Thus Alinghi prevailed on those points. The court also ordered a hearing in order to determine the date on which GGYC could reasonably be compelled to produce the Custom House Certificate for its yacht. On September 2, 2009, GGYC filed an appeal against this decision.[46]

On September 18, 2009, pursuant to its July 29, 2009 decision and following the hearing arising from that decision, the court ruled that the design and construction of the challenger's vessel was not frozen at the time of the challenge. Thus GGYC could continue to modify and to develop its yacht. The Custom House Registry referred to in the Deed of Gift (now called a Certificate of Documentation-COD) had to be delivered two weeks prior to the first race. The Court stated: "It is not only advances in technology, but the unsportsmanlike behavior of Golden Gate that has resulted in substantially reducing SNG's advantage as originally contemplated by the Deed. Nonetheless, Golden Gate's actions are not contrary to law or sanctionable in this limited forum."[47]

On August 6, 2009, SNG sent a letter to GGYC, containing the measurement procedures for the yachts.[48] GGYC did not accept these procedures, in particular because the SNG procedure would include the rudders in the LWL measurement and thus result in GGYC's boat BMW Oracle Racing 90 being disqualified.[49] GGYC requested the court to declare that the measurement procedure proposed by SNG was not valid (in particular the rudders should not be included when measuring length on the load waterline).[50] SNG maintained its position.[51] On October 30, 2009, the court ruled that the rudders should not be included for the measurement of the Load Water Line Length (GGYC's position).[52] SNG appealed[53] that ruling, but the appeal was denied on December 15, 2009.[40]

GGYC also argued that the rules that should apply to the race must be the SNG rules that were in force when GGYC filed its challenge. Othewise, said GGYC, SNG could arbitrarily change the rules so as to make it impossible for the challenger to win. For example, said GGYC, the modified rules could specify that the challenger would have to race while dragging an anchor. According to GGYC, it did not make sense to envisage that the rules could be changed after the challenge was issued, since the challenger based its challenge on SNG's rules at the time of the challenge. GGYC also challenged certain provisions of the agreement between ISAF and SNG, in particular concerning the powers of the jury.[54]

But on October 30, 2009, Justice Kornreich declined to approve a renew and re-argue of her July 29 decision holding that SNG could change its club rules, but she said that the decision only dealt with Rules 49–54, and that everything else about rules changes was dicta (meaning that it was just discussion—not essential to the decision about Rules 49–54 and can not be used as precedent). Further, the court ordered the nomination of a panel of three independent experts who had sat on an America's Cup jury in the past in order to resolve certain outstanding issues. On the basis of the unanimous opinion of those three experts, on November 19, 2009, judge Kornreich ruled that: (1) all ballast, whether moveable or not, must be included when measuring the Load Water Line; (2) it would be safe to hold the race in Valencia in February, (3) the Notice of Race and other rules could be issued as little as 16 days before the race, but the matter is moot because SNG had already published the Notice of Race; that Notice of Race could be modified by SNG but any modifications could be challenged by GGYC and would be reviewed by the jury; (4) the question of when the panel of jurors is customarily appointed is moot because the jury would soon be named; (5) the arrangements between ISAF and SNG regarding appointment of the jury appeared acceptable.[55]

The Notice of Race that was published on November 10, 2009 specified, among other things, that the races would not take place if the wind exceeded 15 knots (28 km/h) or the waves were taller than 1 meter.[42]

On December 4, 2009, it was announced that the international jury had been named.[56]

The boats

BMW Oracle Racing launched a 90-foot (27 m) trimaran in August, 2008. Initially known as BMW Oracle Racing 90 (BOR90), the yacht was officially named USA in September 2009.[57] The boat has been extensively modified since launch, and likely will be modified further before the match.[58]

Alinghi have built a catamaran at a boatyard in Villeneuve, called Alinghi 5. The boat is 90 ft on the waterline with a bowsprit that makes it "about 120ft overall," and somewhat controversially includes an engine to power hydraulics and movable ballast.[59][60][61] It was launched on July 8,[62] being lifted from the construction shed in Villeneuve by a Mil Mi-26 helicopter and carried thereby to Lake Geneva.[63] On August 7, 2009, the same type of helicopter transported the boat from Lake Geneva to Genoa, Italy.[64] At the end of September 2009, the boat was shipped to Ras al Khaimah.

Louis Vuitton Trophy

One result of the legal action that delayed the 33rd America's Cup was the creation of the Louis Vuitton Pacific Series which took place in Auckland in January and February 2009. Ten syndicates took part in the regatta which used boats provided by Team New Zealand and BMW Oracle Racing.[65]

This was then followed by a Louis Vuitton Trophy in late 2009 and 2010.

References

  1. ^ a b Gladwell, Richard (October 8, 2007). "America's Cup document says RNZYS against Protocol". Sail-World NZL. http://www.sail-world.com/nz/index.cfm?nid=38068&rid=6. Retrieved April 16, 2009. 
  2. ^ a b GGYC Complaint Against SNG
  3. ^ a b http://33rd.americascup.com/multimedia/docs/2009/10/Legal_backgrounder_summary_en.pdf
  4. ^ a b http://www.sailingscuttlebutt.com/news/07/cf/
  5. ^ a b Golden Gate Yacht Club v. Societe Nautique De Geneve, 25 (New York Court of Appeals April 2, 2009).
  6. ^ Valencia Sailing: Can one become member of the Club Náutico Español de Vela?
  7. ^ GGYC Notification of Challenge for the 33rd America's Cup, Golden Gate Yacht Club, July 11, 2007, http://www.ggyc.com/GGYCChallenge.pdf, retrieved November 3, 2009 
  8. ^ GGYC's Timeline of events, Golden Gate Yacht Club, March 26, 2008, http://www.ggyc.com/20080326_Backgrounder.pdf, retrieved November 4, 2009 
  9. ^ http://www.alinghi.com/en/33ac/news/index.php?idIndex=656&idContent=15141
  10. ^ .Golden Gate Yacht Club v. Societe Nautique De Geneve, 602446/07 Seq. No. 004 (New York Supreme Court November 27, 2007).
  11. ^ Golden Gate Yacht Club v. Societe Nautique De Geneve, 602446/07 Seq. No. 005 (New York Supreme Court March 13, 2008).
  12. ^ Golden Gate Yacht Club v. Societe Nautique De Geneve, 602446/07 40154016 (New York Appelate Division July 29, 2008).
  13. ^ GGYC Press Release 120808
  14. ^ GGYC Letter to SNG informing of not entering
  15. ^ NYYC amicus curiae brief 123108
  16. ^ Top clubs urge rivals to agree NZ Herald, April 11, 2009"
  17. ^ http://www.alinghi.com/multimedia/docs/2008/03/sng_letter_3-19-08_v6.pdf
  18. ^ http://www.alinghi.com/multimedia/docs/2008/03/rc-bb_20_march_2008.pdf
  19. ^ Golden Gate Yacht Club v. Societe Nautique De Geneve, 602446/07 Order (New York Supreme Court May 12, 2008).
  20. ^ Standoff may spark Cup-like regattas New Zealand Herald, April 26, 2009
  21. ^ http://www.alinghi.com/multimedia/docs/2009/04/090423_Letter_from_SNG_to_GGYC.pdf
  22. ^ Transcript of May 14, 2009 hearing: see page 27
  23. ^ http://www.ggyc.com/20080512_DecisionAndOrder(1409756_1_NY).PDF New York Supreme Court Decision and Order, May 12, 2008
  24. ^ http://multimedia.alinghi.com/multimedia/docs/2009/05/090526_SNG_letter_to_GGYC_2.PDF
  25. ^ http://multimedia.alinghi.com/multimedia/docs/2009/10/091013_SNG_Opposition_Papers.pdf
  26. ^ http://www.alinghi.com/en/news/news/index.php?idIndex=200&idContent=20617
  27. ^ http://www.ggyc.com/GGYC-SNG%2023%20May%2009.pdf GGYC to SNG letter 23 May 2009
  28. ^ http://www.alhamravillage.com/
  29. ^ [1]
  30. ^ http://www.alinghi.com/en/33ac/news/index.php?idIndex=656&idContent=20233 5 August 2009 letter from SNG to GGYC
  31. ^ http://www.ggyc.com/GGYC-SNG%20letter%206%20Aug%2009%20final%20signed.pdf
  32. ^ http://www.ggyc.com/GGYC-SNG%20letter%20(venue)%2015%20Oct%2009%20signed.pdf
  33. ^ http://www.ggyc.com/GGYC-SNG%20letter%2015%20Oct%2009%20(venue)%20pre-sig%20final.doc
  34. ^ http://multimedia.alinghi.com/multimedia/docs/2009/08/090813_SNG_Letter_to_GGYC_re._Venue.pdf
  35. ^ http://www.ggyc.com/GGYC%20Memo%20of%20Law.pdf
  36. ^ http://www.alinghi.com/en/news/news/index.php?idIndex=656&idContent=20696
  37. ^ http://www.ggyc.com/Oct%2028%202009%20%20GGYC%20Statement%20FINAL.pdf
  38. ^ UAE port loses America's Cup New Zealand Herald, October 28, 2009
  39. ^ http://www.alinghi.com/en/33ac/news/index.php?idRubr=&idIndex=656&idPage=1
  40. ^ a b Golden Gate Yacht Club v. Societe Nautique De Geneve, 602446/07 1764 1765N (New York Appelate Division December 15, 2009).
  41. ^ http://www.alinghi.com/multimedia/docs/2009/11/091110_SNG_letter_to_Justice_Kornreich.pdf
  42. ^ a b http://www.alinghi.com/multimedia/docs/2009/11/091110_33rd_Americas_Cup_Notice_of_Race.pdf
  43. ^ http://www.ggyc.com/Order%20to%20Show%20Cause%20Executed%20July%2014,%202009(1550317_1_NY).PDF
  44. ^ http://www.alinghi.com/en/33ac/news/index.php?idIndex=656&idContent=19922
  45. ^ http://www.ggyc.com/Decision%20and%20Order%20July%2029%202009.pdf
  46. ^ http://www.ggyc.com/090902_Notice_of_Appeal_GGYC.pdf
  47. ^ http://www.ggyc.com/090918_NYSC_Court_Order.pdf
  48. ^ http://www.alinghi.com/en/33ac/news/index.php?idIndex=656&idContent=20260
  49. ^ http://www.ggyc.com/02%2009%2009%20GGYC%20Press%20Statement.pdf
  50. ^ http://www.ggyc.com/Brief%20(Unredacted).pdf
  51. ^ http://www.alinghi.com/en/33ac/news/index.php?idIndex=656&idContent=20521
  52. ^ http://www.ggyc.com/B001D1CF.pdf
  53. ^ http://www.alinghi.com/multimedia/docs/2009/11/091113_SNG_Reply_Brief.pdf
  54. ^ http://www.ggyc.com/2009%2009%2029%20Reply%20Memo%20of%20GGYC.pdf
  55. ^ Golden Gate Yacht Club v. Societe Nautique De Geneve, 602446 Seq. No. 011 (New York Supreme Court November 19, 2009).
  56. ^ http://www.sailing.org/news/30889.php
  57. ^ http://www.ggyc.com/USA%20Certificate%20of%20Documentation.pdf
  58. ^ http://www.ggyc.com/09%2008%2010%20GGYC%20Press%20Statement.pdf
  59. ^ http://sports.espn.go.com/oly/news/story?id=4342645
  60. ^ America's Cup Spycam - Alinghi and BOR90 afloat and ashore - close up
  61. ^ Alinghi's big secret set to sail New Zealand Herald, July 6, 2009
  62. ^ Alinghi chooses catamaran for America's Cup duel New Zealand Herald, July 5, 2009
  63. ^ "Alinghi 5 takes to water by helicopter". Performance World. Yachting World. http://www.yachtingworld.com/auto/newsdesk/20090608175132ywperformance.html. Retrieved 2009-07-10. 
  64. ^ http://www.tsr.ch/tsr/index.html?siteSect=200001&sid=11049563
  65. ^ http://www.nzherald.co.nz/yachting/news/article.cfm?c_id=106&objectid=10568639

External links

See also


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