America Cup: Long legacy of legal wranglings

Published: 9:52AM Monday February 15, 2010 Source: Reuters

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The 33rd America's Cup ended on Monday with US challengers BMW Oracle beating Swiss holders Alinghi 2-0.

The regatta was finally sailed after the New York Supreme Court said last month it would not hear before the match a complaint from BMW Oracle over the origin of sails to be used by holders Alinghi.

At the heart of the acrimonious bickering between two of the world's richest men - Alinghi boss Ernesto Bertarelli and BMW Oracle owner Larry Ellison - is control of the competition.

Ellison has consistently sued Alinghi for the "unfair" rules they have set up for the 33rd America's Cup.

Here are some details.

The Background:

-The two rivals have been locked in a legal dispute for more than two years over the terms of the running of the 33rd race.

-BMW Oracle's Golden Gate Yacht Club (GGYC) has contested the way Alinghi set up the 33rd America's Cup, arguing that it unfairly favoured the Swiss defender.

-Under America's Cup rules, the winner has to decide where, when and how to race the next event, agreeing the details with the first yacht club to challenge them for the "Auld Mug".

-The 33rd America's Cup competition had been scheduled for 2009 but was delayed until February 2010.

Latest legal moves:

-Last month BMW Oracle asked the New York Supreme Court to decide if Swiss-based Alinghi, who sail under the colours of Societe Nautique de Geneve, were allowed to defend the title with sails made in the United States. The case will be heard on February 25.

-The Deed of Gift race rules say competitors' yachts must be constructed in the country they represent. Alinghi contested the claim, saying their sails were made in Switzerland, and that in any case sails were outside the original definition of what constitutes the yacht or vessel.

-The holders also accused BMW Oracle, who sail under the Golden Gate Yacht Club colours, of having a French-designed yacht as part of the Swiss team's defence in the long-running legal battle.

Where to race:

-A New York appeals court at the end of 2009 rejected a bid by Alinghi to hold the race in the United Arab Emirates.

-The New York State Supreme Court's appellate division in Manhattan made it almost certain Valencia, Spain would host the race, as it marked a possible end to a more than a two-year legal battle over the terms of the race.

-Alinghi previously wanted the race to be held in Ras al-Khaimah in the UAE in February or May, citing ideal sailing conditions as its justification. But California-based BMW Oracle objected to the choice, saying it was unfair because it was transporting equipment to Valencia.

-In October 2009 the New York State Supreme Court ruled the UAE choice violated the rules, a ruling that prompted Alinghi to offer Valencia as a substitute before it reversed course and attempted again to stage it in the UAE.

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