The New York legal system has lost a key revenue stream with the announcement that the Golden Gate Yacht Club and previous America’s Cup Trustee, Société Nautique de Genève have dropped all outstanding litigation. Lawyers for both sides have been the benefit of the arcane rules contained in the Deed of Gift that governs the America’s Cup and mandates that disputes be resolved in the New York courts.
[cleeng_content id=”778944793″ description=”99 cents or 10,000 hours. The path to being an expert can be easy or hard. ” price=”0.99″]A statement issued by the Golden Gate Yacht Club says that the parties have reached an agreement that all outstanding litigation will be dropped but both sides. This includes GGYC’s Breach of Fiduciary Duty (“BFD”) claim against SNG, as well as all other claims over the design and construction of yachts Alinghi 5 and USA.
Now in possesion of the trophy, GGYC Commodore Marcus Young said:
“In place of controversy, we seek consensus. Instead of continuing argument, we are pleased to have reached agreement.”
No matter how the Cup is run in the future it is unlikely that this will be the last of the court cases. The nature of the event seems to bring out the best and the worst in those competing for it. While GGYC representatives have started a consultative process with regard to the venue, timing, format and type of boat for the 34th America’s Cup, the Deed of Gift will continue to govern the competition.
In particular, the dropping of the “constructed in country” case leaves a question mark over what is legal and what is not for competitors moving forwards. Does every country who wants to compete for the cup have to build 3DL sail manufacturing facilities to be eligible?
Russell Coutts, CEO of GGYC’s sailing team BMW ORACLE Racing said
“Good decisions not hasty decisions – this is what the Cup community wants. Our focus is on looking ahead and making the 34th edition of the oldest trophy in international sports the best America’s Cup yet. We will do our best to fulfill Larry Ellison’s vision of a competition which respects the Cup’s unique tradition whilst moving forward with the latest technology to attract an even wider audience.”