Tuesday, April 15, 2008

its happening again.....

Yea.... here we go. Vanity knows no bounds. In retrospect, with Alinghi's notice of appeal, should we have expected anything else? At this point the Honorable Judge Herman Cahn should enforce the Golden Gate Yacht Club's Challenge for July of this year and if either party isn't on the starting line, a forfeit should be in order.

Gee whiz Alinghi, just lease out Hydroptere for a couple of months. The lighting fast foil was built in Switzerland (deed proof) and it has got to be cheaper than retaining Barry Ostrager.

Anyway, more on this mess later.

ps Ernesto, don't you realize that this mono amono 'Cat Cup is going to be the greatest yacht race of all time and you should have gotten your act together long ago. Just call up your buddy Mohammend Sharaf in Dubai, United Arab Emirates and have his Port Authority fork over the dollars.....oops, euros to get this thing done. Last time I checked Dubai is in the Northern Hemisphere. Rent out the above (Hydroptere) , set the course and rock & roll!

From BMW Oracle

The Golden Gate Yacht Club (GGYC) said today (April 14, 2008) that further legal attempts by the defender (Societe' Nautique de Geneva, Alinghi) to delay the next America’s Cup Deed of Gift match are regrettable and the club will be doing everything it can to ensure the event remains on track. “Buried within the legal language of this press release it appears clear that the defender is unsatisfied with Justice Cahn’s decisions and now intends to file an appeal,” Tom Ehman, the club’s spokesman said today responding to a press statement issued by the defender who have filed further papers with the New York State Supreme Court. From BMW Oracle

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.

Wednesday, April 2, 2008

Letter to Judge Cahn

To The Honorable Judge Cahn,

Dear Sir,

I wanted to drop you a quick note thanking you for your infinite patience in your ongoing hearings involving the Golden Gate Yacht Club (GGYC) representing BMW Oracle and Alinghi’s Societe’ Nautique de Geneva (SNG). Whoever thought the Swiss could be so contentious? Oh, that’s right Alinghi chief Ernesto Bertarelli is Italian, hence the dichotomy.
Your thoughtful introspection into the divisive litigation over the 33rd America’s Cup has proved once again that the Deed of Gift stands on its own merits as a brilliant, timeless document that has proved resolute against all takers and remakers.
The New York Supreme Court has shown once again that they are the true and rightful arbitrators of yacht racing’s “Holy Grail”. Juxtaposition aside, it is time to close the door on the silver spooning between BMW Oracle’s Larry Ellison and Bertarelli.
As the Deed implores; the America’s Cup “is donated upon the condition that it shall be presented as a perpetual Challenge Cup for friendly competition between foreign countries.”
In this case, with all the time and effort that you dear sir have spent on the continuing litigation, combined with the New York Court of Appeals providing a definitive America’s Cup roadmap in their ruling on the Mercury Bay Boating Club vs. San Diego Yacht Club in 1990.
The time has come to close the door, in lieu of mutual agreement and order the parties to proceed with next America’s Cup or to revoke the charitable trust on the grounds that SNG/Alinghi has not upheld its obligation as current trustee.
Honorable Sir, you and your colleagues have rightfully upheld the literal reading of the Deed and rather than having the parties concerned, return to your court every time they need an interpretation of every word in the document, be it “having”, “keel boat” or “when” and “where” it is time to direct the parties to mutually agree or forfeit.
If SNG or GGYC cannot come to an agreement on the simplest of terms, the America’s Cup should be returned to the New York Supreme Court and placed with it’s original owners the New York Yacht Club (NYYC). The NYYC can implement the new class rule or a “version six” of the current America’s Cup Class and establish a new protocol for races to commence in Valencia, Spain in 2011.
Leading up to the next America’s Cup can be a series of “Acts” which could include stops in Great Britain, Italy, South Africa, Asia and America. SNG and GGYC could be permitted to compete if they were willing to legally comply with a strict set of conditions.
As to SNG and GGYC, it is time to settle this like sailors, on the water. With no legal “tolling” in place, the dates of the match were set in GGYC’s challenge for July 4, 6 and if necessary July 8th , 2008.
In your ruling of March 17th you were very clear in emphasizing that; “Contrary to SNG’s assertion, that parties wound up entangled in legal proceedings, which “interrupted” the 10-month period (notice given for match by challenger, GGYC), does not invalidate the Notice of Challenge.”
With no legal “tolling” (timeout) agreement in place and in spite of BMW Oracle’s own internal toll timeline of 30 days after your court ruling of November 27, 2007, when on December the 29th they announced a commitment to a Deed of Gift challenge and proclaimed race dates 10 months hence in October of 2008, nothing precludes or interrupts the fact that the challenge was set for July of 2008.
For Alinghi, it is time to realize that they still have tremendous advantages as the defender. You can be 99% certain of what type of multi-hull BMW Oracle has designed and for what conditions it was built for: hint hint it’s not for heavy weather. Also as the Deed declares: “if of one mast”……
So, Ernesto man up and start building. To the “Ecstasy of St Theresa”, take a page from your own families’ past, when Serano’s founders took the initiative and started extracting urine from all those nuns to start what became; your business.
You can build one, two, five new boats. You do not have to declare your defender until the starting line. The boat the BMW Oracle is building is the one they have to race with and isn’t time to demand that “custom-house” registry?
That is where MBBC was handicapped with the construction of their monstrous mono-hull, when SDYC declared a catamaran defense the Kiwis were stuck, dead in the water.
In conclusion Honorable Sir, your rulings and words have done honor to the living, breathing Deed of Gift, but it is time to put a stop to our journalistic pontificating and the parties’ concerned endless trail of litigation.
Order a stop to the march to madness, enforce the dates of GGYC’s challenge, demand a site declaration and as Peter De Savary so aptly put it twenty years ago the last time we were faced with a nexus of litigation: “San Diego, (insert SNG) doesn’t have to do anything but set a course on the water and then get the hell out of the way.”
If world class race winners Sayanara and ABN Ambro can fender up to the Arnold Lines coal dock in Mackinac Island, Michigan then anything that BMW Oracle and Alinghi build can show up to race anyplace, anywhere just not anytime…..
In the words of the Honorable Judge Sol Wachtler, who concurred with the majority in the New York Court of Appeals ruling in MBBC vs. SDYC when he wrote: “This case has little or no significance for the law, but it has caught the public eye like few cases in this court’s history. Much of the reason for this attention, apparently, is the supposition that here at stake are grand principles – sportsmanship and tradition – pitted against greed, commercialism and zealotry that threaten to vulgarize the sport. In the end, however, the outcome of the case is dictated by elemental legal principles.”

Sincerely, Mark W Reid
twelvemeterupdate.blogspot.com

Monday, March 24, 2008

You’re so Vain”…..and you know who you are. (redux)

You’re both so vain, you’ll probably think this story is about you, and unfortunately you are right. The old adage holds true that two wrongs don’t make a right.So here we are with an apocalyptical nightmare America’s Cup scenario that appears to be deadlocked in an insurmountable ego driven bypass.On one hand, there is Alinghi President Ernesto Bertarelli, whose team defended the America’s Cup last summer for the Society Nautique de Geneva (SNG) and who is trying to force his vision forward by usurping, for the most part, the mutual consent provision of a new protocol for the 33rd running of the world’s most prestigious yacht race.
On the other hand is Larry Ellison, the founder and chairman of Oracle. His racing team BMW Oracle had perhaps the fastest AC Class Version 5 boat in Valencia, Spain, but was virtually swept away in five of 6 races against Luna Rosa from Italy. Ellison’s team represented the Golden Gate Yacht Club and was the Challenger of Record, until they were eliminated.After Alinghi defended the ‘Cup in seven exciting races in probably the best America’s Cup ever, they brought in a challenger of record (COR)from Spain to sign off on Bertarelli’s vision for the next America’s Cup.
Unfortunately, the new club had not fulfilled its minimum obligations to qualify as pro bono COR.According to the strict terms of the Deed of Gift, which governs the rules, by which the America’s Cup can be challenged for the COR has had to have conducted an annual regatta and had to have been an established yacht club from a proprietary standpoint. This differs from merely being able to challenge for the ‘Cup. The COR is held to a higher standard.BMW Oracle objected to the new protocol for the next race and submitted a challenge for the America’s Cup to the SNG.
When the challenge was rejected, the GGYC filed suit in the New York Supreme Court, to invalidate the Spanish challenge. The court is bound by the Deed to arbitrate all disputes relating to the America’s Cup Trophy, which is held as a charitable trust by the State of New York.On November 27th, the Honorable Judge Herman Cahn ruled in favor of the Golden Gate Yacht Club (GGYC) and declared them to be the true challenger of record. Alinghi and SNG are now challenging(not as yet appealing) the ruling and those arguments will be heard in court on January 14th, before Judge Cahn orders his decision.
Prior to that, BMW Oracle submitted nine amendments to the protocol and has support of most of the other seven challengers at this point. By in large, Bertarelli’s original vision for the protocol of the 33rd America’s Cup remains intact.There is agreement on the new 90 ft. AC boat, the defenders are allowed to sail in the regatta; the dates, venue are unchanged and other than egos, the remaining point of contention would appear to be the 2 boat issue.
In spite of Alinghi’s contention, this has little to do with sour grapes on Ellison’s part and more to do that many on his team are very well versed and rehearsed on rules that regulate the America’s Cup.In order to keep costs under control, Bertarelli wants to limit construction of the new ‘Cup class and the inherent expense escalator of 2 boat testing. BMW Oracle has countered with crew limitations and a moratorium on when the yachts can sail against each other. But, Bertarelli has so far refused to compromise and here we are.
Controlling costs is a noble pursuit, but the America’s Cup is the grand dame of all the balls and should differ from the atypical American professional sports leagues, where ownership has had to embrace a socialistic manifesto to keep the lesser franchises afloat. If it is imperative to have the lesser funded teams from countries like Britain, South Africa and China onboard, then institute a hard line “salary” cap to keep the billionaires in check.During the 32nd America’s Cup the speed gap between the top and bottom had narrowed to the point, that a majority of the teams were very competitive.
The problem with the ‘Version 5” was that the high tech design teams were spending millions for milliseconds and now the rule makers have, hence forth regulated a very competitive America’s Cup Class boat into extinction.In this impasse the devil is not in the details, it largely involves the party’s inability to negotiate and compromise. No, Washington DC has not challenged for the ‘Cup of late, but it seems like the air and attitude of our nation’s capital has rubbed off on the Auld Mug. Parlay, anyone?

Wednesday, March 19, 2008

History of the America's Cup (Brief)

A Brief History of the America’s Cup.

The original contest for the One Hundred Guinea Cup took place off England's Isle of Wight in 1851. The contest was won by the yacht America, against 18 British challengers. Aboard, was Commodore John Cox Stevens, who later presented the trophy to the New York Yacht Club in 1857.America dominated the event to such an extent, that Queen Victoria was said to ask, "Who's in second?” In which she was told, "You’re Majesty, there is no second!"The first race for the “America's Cup” was in 1870 off of Staten Island, in New York as the schooner Magic won a fleet race against the British challenger Cambria. In an act of conveyance, the original members of the America syndicate, placed the ‘Cup in a charitable trust as a perpetual challenger’s trophy.

The deed of gift, which is the bylaw that governs the race, was amended by the last surviving member George Schuyler in 1887. The defense of the “Auld Mug” for the most part, takes place every few years. It attracted such luminaries as legendary yacht designer Nathanial Herreshoff, Captain Charles Barr and tea baron Sir Thomas Lipton.

The NYYC moved the regatta to the exclusive resort community of Newport, Rhode Island in 1930. The America’s Cup was graced in the 1930’s by the magnificent J-boat class. Led by railroad and banking blueblood Harold Vanderbilt, he matched up victoriously against the aeronautical wizard T.O.M. Sopwith, from over the pond in England.

After World War ll, the races were revived in 1958 with the 12-Meter Class boat. These 60 ft. yachts provided challenging matches in Newport's moderate and shifty wind conditions. Throughout the next three decades, the NYYC conducted defense trials served up most of the drama, with CNN cable mogul Ted Turner, France’s Baron Marcel Bich (the Bic pen) and avid fan Walter Cronkite providing most of the star power.That was until 1983, when the controversial winged keel yacht Australia 2, won the America’s Cup in the best of seven races over Dennis Conner's Liberty. The men from the land “downunder" unbolted the trophy and took it back to the picturesque fishing port of Fremantle, Western Australia, to defend it against all comers.In one of the greatest sports comebacks of all time Conner, challenging under the burgee of the San Diego Yacht Club went down to Australia in 1987 and brought the 'Cup back to America, crushing the Australian yacht Kookaburra in the process 4 to 0.

Enter New Zealand, who through the efforts of banker Michael Fay was able to challenge for the "Cup in 1988 by forcing the SDYC to run the races under a strict interpretation of the original race rules. Again, Dennis Conner countered with a brilliant defense, this time in a fixed wing-sail catamaran.The America's Cup recycles its event about every 4 years or so. It has changed hands several times between America, New Zealand and now, Switzerland. The Swiss yacht Alinghi, representing the Geneva Yacht Squadron won the ‘Cup in 2003. The team defended it this past year in Valencia, Spain, against many challengers from all over the globe, including teams from South Africa and China.

Since Fay's surprise challenge, the Deed has generally been usurped of its authoritative grip on the rules by mutual agreement provisions called the America's Cup Protocol. The protocol's enabling resolutions allow the Challenger of Record to establish the rules and regatta format to determine who will challenge the defending boat for the America's Cup.The matches feature the yachts sailing against each other on a windward/leeward course, approximately twenty miles in length. A series of elimination round robins, between all the challengers race for the Louis Vuitton Cup. Each round is worth more points than the last, and the highest scoring two yachts face off against each other to determine who race the defender for the America’s Cup. The Italian fashion design store Louis Vuitton has sponsored the challenger trials since 1970.

Copyright Mark Reid 2007

Crossing my "t"s and dotting my "i"s.

The latest verdict is out from Judge Cahn, so I like many of you will do diligence on all of the details before commenting. See you Friday!