Monday, May 12, 2008

New York Courts Rule. Appeal Likely

Judge Herman Cahn finalized his court order today. In a bit of a shocker he temporarily gave the Societe Nautique de Geneva (SNG)representing Alinghi a bit of a lift, ruling that the match should commence 10 months from today.
Apparently the Judge had his own toll in place. Though BMW Oracle has not announced it as yet, they are certain to appeal. The America's Cup is a challenger driven event and this ruling clearly gives the advantage back to Alinghi, whose delay tactics have clearly paid off....for now.
Judge Cahn has ordered an America's Cup match for March of next year. This means that Alinghi will have to defend in the Southern Hemisphere, if the ruling stands. Off the cuff, Capetown, South Africa and Auckland, New Zealand would appear to have the inside track for hosting the next America's Cup.
Team Shosholoza has displayed loyalty to SNG throughout the litigation and has been financial supported by Alinghi Team owner Ernesto Bertarelli.
For New Zealand, this would seem to be a way to appease the Kiwis, who are suing Alinghi for breach of contract. Perhaps an Auckland defense would be an olive branch.
Anyway, for BMW Oracle this is a major defeat and it would appear that the four corners of the Deed are in their favor. Clearly no official toll was in place, since Alinghi rejected original terms last September. In their brief to the Appellant Court, BMW Oracle included language about the 10 month notice of challenge.
Clearly, this is not over and expect further fireworks before the June hearing date.
Stay tuned.....

From Alinghi

Justice Cahn from the New York Supreme Court today ruled in favour of the Société Nautique de Genève (SNG) – represented by Alinghi, Defender of the America’s Cup – ordering the Deed of Gift Match brought by the Golden Gate Yacht Club (GGYC) to be raced in 2009.

Lucien Masmejan, lead counsel for the SNG, comments: “We are pleased that Justice Cahn has issued this order and recognised within his decision that it was the actions of the GGYC that brought the America’s Cup to court and that depriving SNG of the 10-month notice period mandated by the Deed of Gift would be inequitable.

“This 10-month notice period should commence when there is a final decision regarding the propriety of the GGYC challenge and fully taking into account the Northern Hemisphere window as indicated in the Deed of Gift. This means that the Match cannot take place before May 2009.

“Several issues still remain unresolved. Among these, the GGYC certificate is critical, as it is unclear and contradictory. Since GGYC refuses to provide us with the information required in the Deed of Gift, we are forced to continue with the legal procedures that GGYC started by bringing the America’s Cup to court."

From BMW Oracle

New York Supreme Court Judge Herman Cahn orders date and venue for America’s Cup.
Today the New York State Supreme Court issued an order that the next America’s Cup match should take place in March next year, ten months from now, and that the Defender should disclose the venue six months prior to that. “We are pleased that the Court has advanced the process and required the Defender to confirm the venue,” Golden Gate Yacht Club spokesman Tom Ehman said. “We will now be considering the order to determine our next steps.”

Wednesday, May 7, 2008

On and on we go. Where it ends, nobody knows...except.

With all the latest ruminating by the legal powers that be, it appears that the reality show the 33rd America's Cup has become, is being thrown into an eternal spin cycle by lawyers without end.
Not one damn thing can be decided by the two competing factions, without the specter of litigation. All because of the fact that thru an attempt at mutual agreement last December, for the most part the Golden Gate Yacht Club and the Society Nautique de Geneva could not agree about whether one or two of the new AC 90 Class America's Cup boats should be built.
Ninety-five percent of the bullshit Protocol for the 33rd America's Cup seemed to be acceptable to the warring factions. New York Supreme Court Judge Herman Cahn should return to that moment in time and order binding arbitration on the infamous 9-point plan. He should declare that upon resolution of the protocol that the dates for the next America's Cup should be in 2011.
1] On the issue of the AC 90, 2 boats should be permitted for no other reason than for safety's sake. To figure out the wherewithal to race, tack, jibe and hit the starting line with these new boats, you need to learn how to mix it up and scrape some paint without killing your opponent or yourself.
2] If money is the big concern, put on a financial cap of 100 million dollars per team with a rebate kicker back to the lesser funded teams if you exceed the cap.
3] Appoint a neutral America's Cup arbitration panel to be chosen by the former Trustees of the America's Cup. The panel will arbitrate disputes and appoint race officials.
4] All competing YACHT CLUBS should be held to a higher standard and meet the minimum qualifications of the Deed of Gift. That means by 2011 you have 3 years to hold an "annual" regatta. If you need a sponsor call your local beer or rum distributor.
5] To the New York Supreme Court: Don't answer your phone. Get caller ID and if anyone representing an America's Cup Syndicate or Yacht Club calls; ban them permanently from competition.
It is time to stop the spin cycle, step back and return to basics. I'm sure that with summer approaching in New York City there will be plenty of ambulances for all these attorneys to chase.