Tuesday, April 15, 2008

From Alinghi

America’s Cup Defender changes jurisdiction to secure a competitive Match in 2009

The Société Nautique de Genève (SNG) has today announced that it proposes to file an immediate appeal with the New York Appellate Court in order to accelerate the current legal process to return the America's Cup to the water with a competitive race. The intransigency of Golden Gate Yacht Club (GGYC) since the day they filed their law suit has forced SNG to move the case to the next level in the New York legal system. In an attempt to obtain a swift resolution to the current uncertainty, an expedited process is being requested together with a motion to stay the case, this in order to suspend the implementation of Justice Cahn’s previous order until the Appellate Court rules.

In line with standard legal practice, if the motion to stay and the expedited appeal process are granted, the Appellate Court could issue an order before the end of the June term enabling the competition to take place in accordance with the Deed of Gift, approximately 10 months later.

Lucien Masmejan, SNG’s lead counsel, explains: “Our sole objective is to race in a competitive America’s Cup Match. We have stated our desire for a fight on the water sometime after May 2009, but GGYC continue with the destructive strategy that has already eliminated all other challengers. They also refuse to provide the required information on their boat so in order to have a competition in 2009, worthy of the America’s Cup, GGYC’s obstructive tactics leave us no choice but to appeal to achieve our objective.”

“We believe that the precedent set by the Mercury Bay Case in the eighties is supportive of the content of our appeal and look forward to the Appellate Court resolving matters in a timely manner.”

>> Pre Argument Statement

>> Notice of Appeal


Q&A: Lucien Masmejan, SNG lead counsel, explains last legal actions

Following today’s filing of a notice of appeal and pre-argument statement, and anticipating tomorrow’s subsequent motions for stay pending appeal, expediting appeal and expedited relief, we have prepared the following insights into the actions that SNG has taken.

Why have you appealed?
Our goal is to have it decided on the water and have a competitive America’s Cup
in 2009. We are in the process of appealing and filing a motion to request an expedited appeal and to stay the case in order to attempt to fast track the legal process. We have spent eight months engaged at trial court fighting a law suit brought by GGYC to force their way to the America’s Cup Match at the expense of 12 other challengers. Justice Cahn’s order dated 17 March 2008 left key elements unanswered, including the dates for the event. Since then, we had a hearing with Justice Cahn but we still have no certainty as to the ruling. We are now less than 3 months from the dates indicated in the original GGYC challenge and we still do not know when the 10 months notice has started and which will be their boat.
In that respect, the Challenge submitted by GGYC on 11 July 2007 does not supply the information prescribed in the Deed of Gift and is not only ambiguous but also contradictory in places. GGYC are now tactically withholding the custom-house registry and vital technical information regarding the boat that they will challenge with from the defender. This tactic is against the terms of the Deed of Gift and most certainly in contrast with the intentions of George Schuyler.

What are the next steps?
Today, Monday 14 April, we have filed a notice of appeal and pre-argument statement with the New York Supreme Court. Tomorrow, Tuesday 15 April, we will file a motion for stay pending appeal, a motion for expediting appeal, and for expedited relief.
We have proposed a timeline that would lead to oral arguments being heard before the end of the June 2008 term to move to a final decision as rapidly as possible.
We are conscious that time is a priority and we want to make sure that the 33rd America’s Cup takes place in 2009. We are committed to resolving the current litigation as quickly as is practicable.

What does it mean to file a motion for stay pending appeal and a motion for expedited relief?
Motion to stay pending appeal means that, if granted, the implementation of any previous order is suspended until the Appellate Court rules.
Motion for expedited relief is the fastest possible procedure when the case requires urgent ruling.

What do you think your chances of a successful appeal are?
Precedent would suggest that our chances are good; the trial court judgement was overturned in the Mercury Bay Case of the eighties. At the Appellate Court the case is heard by a panel of judges. We believe that the opportunity to present our case to a panel of Judges and the opportunity for them to discuss the merits and complexity of the case will lead to a positive outcome.

Why do you appeal before Justice Cahn issues the Order stating the dates as requested in the 2 April 2008 hearing?
We want to defend the America’s Cup in a competitive and compelling match and to do so we need to have sufficient time to build a competitive boat. The deed of gift entitles us to a full 10 months notice period, which we want to protect in the best interest of the competition. The legal advice we received indicates that appealing now offered us the best chances of ensuring this outcome.

Does this appeal mean that the sailing programme at Alinghi will stop?
Absolutely not. We have a comprehensive programme planned for the season that is a blend of competitive multi hull and large mono hull racing to ensure we are prepared for all eventualities. We are looking forward to launching our sailing programme along with presenting the new sailing team and design team members to the media at our base in Valencia on 24 April 2008.