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.....