sail-world.com
 
 
News Home Emirates Team NZ NZ Boating-World Cruising Video Gallery FishingBoating Photo Gallery Features
Newsletter Subscribe MarineBusiness-World
Sail-World.com : Breach of Fiduciary Duty suit filed against America’s Cup Trustee
Breach of Fiduciary Duty suit filed against America’s Cup Trustee

'Golden Gate yacht Club’s challenger flies off San Diego'    BMW Oracle Racing © Photo Gilles Martin-Raget    Click Here to view large photo

The Challenger of record in the 33rd America's Cup has, as expected, filed an action for a Breach of Fiduciary Duty against the current Trustee and Holder of the America's Cup, Societe Nautique de Geneve.

The San Francisco based Challenger is asking the Court to appoint a new club to oversee the connduct of the next Match. That organiser could be one of a number of bodies, however the Royal New Zealand Yacht Squadron as the previous Trustee is the most likely entity. Quite how the funding for that scenario would work is another matter.

Societe Nuatique de Geneve have reacted angrily to the allegations and new legal move, claiming that it is the eighth initiated by the Challenger and that GGYC's moves are either a ruse to win the America's Cup by default or avoid meeting the Defender on the water.

They have in turn told the Challenger to front up for the match in Ras al-Khaimah on 8 February 2010, or allow another Challenger to do so.

SNG rejected an earlier offer, made after Golden Gate YC was declared to be the legitimate Challenger, to stage a multi Challenger, mutual consent match in Valencia in 2009 or 2010, on a similar Protocol to that used for the 32nd Match in 2007. SNG instead elected to meet GGYC in a so-called Deed of Gift Challenge, involving just the Swiss and US clubs and to be sailed in 100ft plus multihulls

The full statement issued by the Golden Gate Yacht Club is as follows:

New York, NY, October 26, 2009 – Reckless and repeated disregard in its stewardship of the America’s Cup by the Société Nautique de Geneve (SNG) has prompted the Golden Gate Yacht Club (GGYC) to ask the New York Supreme Court to remove the Swiss yacht club from its position as Trustee in a Breach of Fiduciary Duty complaint filed today.

In its place, GGYC – the Challenger of Record the 33rd America’s Cup - has requested the Court to appoint a faithful, fit and proper substitute to oversee the next Match to be sailed in 2010, starting 8 February.


Ras Al Khaimah, 17/10/09
Alinghi 5 in Ras Al Khaimah
Alinghi press conference in Ras Al Khaimah, venue of 33rd America’s Cup.
Sheikh Omar Bin Saqr Al Qasimi and Ernesto Bertarelli

Guido Trombetta/Alinghi -  Guido Trombetta/Team Alinghi  
The new Trustee would provide equitable terms for both competitors, something SNG has denied GGYC by its orchestration and manipulation of the rules and processes designed to ensure that the defending sailing team, Alinghi, can not lose.

GGYC, and its sailing team, BMW ORACLE Racing, remain committed to sailing the Match on the dates in February 2010 set by the Court. There is no desire by this action to change Alinghi’s role as SNG’s sailing team and defender.

Foremost among a catalogue of failures of SNG and listed in a Breach of Fiduciary Duty complaint are:

• Offering the America’s Cup hosting rights in order to extract secret commercial deals

• Repeated attempts to seize control of the rules and officiating processes to ensure that Alinghi can not lose

• Moves to disqualify GGYC’s yacht despite assurances to the New York Supreme Court that this would not happen

• Selecting Ras Al Khaimah for the 33rd Cup to further its own business interests whilst exposing GGYC to unnecessary danger

'Winning the Cup brings not just honor and pride, but responsibilities too. The honor may have gone, but the responsibilities remain,' said Russell Coutts, Skipper and Chief Executive of GGYC’s challenging team, BMW ORACLE Racing.


Announcement of the 33rd America’s Cup. From left to right, Francisco Camps, President of Generalitat Valenciane, Elene Salgado, Spanish Minister of Infrastructure, Rita Barberà, Mayoress of Valencia, Ernesto Bertarelli, Alinghi Head Syndicate. -  Ivo Rovira /Alinghi   Click Here to view large photo
The America’s Cup is meant to be hard to win, not impossible to lose,' added Coutts.

The complaint also states that the America’s Cup was used as a powerful bargaining chip to extract enormous commercial benefits through secret and complex side deals in selecting Valencia and Ras Al Khaimah as host venues for the 32nd and 33rd Matches.

It is clear that entities associated with Ernesto Bertarelli leveraged the America’s Cup for gain.

'SNG says it has the right to change the rules for the America’s Cup races at any time and select all the umpires. It’s like letting the Phillies change the rules for the World Series after it starts and select all the umpires,' said David Boies, chairman of Boies, Schiller & Flexner.

'Basic fairness and sportsmanship require that a contest be played with set rules and judged by umpires free of interference. The Courts have already had to stop SNG from negotiating unfair rules with a sham competitor orchestrated by SNG. We hope that SNG will now abandon its efforts to win with rule manipulations and back-room deals. Let the best boat win on the water,' added Boies.

GGYC is also contesting SNG’s choice of Ras Al Khaimah in a separate case before the New York Supreme Court because it is in direct contravention of the Deed of Gift’s clear stipulation that the Cup can only be sailed in the Northern Hemisphere between 1 May and 1 November.

Nevertheless as Trustee, and in breach of its duty, SNG did not consult GGYC at any stage in selecting Ras Al Khaimah, a location it knew did not meet the clear language of the Deed of Gift and one which exposes the American challenger to unnecessary danger.


From left to right: José Luis Villanueva, General Director of Events of Generalitat Valenciana; Rita Barberá, Mayor of Valencia; Lucien Masmejan, ACM representative at the Pre Regattas 2009 Announcement
Valencia, Spain -  Jose Delgado-Alinghi   Click Here to view large photo
SNG's actions since winning the America’s Cup in 2003 and defending it 2007 has brought a clamor of complaint from the sailing community around the world.

'Ernesto Bertarelli has taken advantage of the Cup holder’s inherent competitive balance in the Deed of Gift to absurd and obscene levels. By his actions on land he has tried to make sure that he can not be beaten on the water,' commented Bill Koch, whose America3 team was the successful defender of the America’s Cup in 1992.

Italy’s Vincenzo Onorato, a three-time challenger, said of Alinghi’s proposed rules for the next Cup: 'This is the most unsporting document ever done.'

The America’s Cup has prospered for 158 years, despite the American Civil War, two World Wars and several economic depressions.

The oldest international trophy in sport is now in peril because of the selfish and self-serving acts of the Swiss yacht club, its representative sailing team Alinghi, America’s Cup Management (both controlled by Ernesto Bertarelli) and other affiliates.

A copy of the Breach of Fiduciary Duty complaint can be found at: http://www.ggyc.com/acnews.php

Notes:

Golden Gate Yacht Club: San Francisco’s Golden Gate Yacht Club is the Challenger of Record for the 33rd America’s Cup.

BMW ORACLE Racing: Is GGYC’s nominated sailing team, owned by Larry Ellison. Russell Coutts, the most successful skipper in the history of the America’s Cup, is Skipper and CEO.

Société Nautique de Genève: SNG is the trustee of the America’s Cup having won it in 2003 and 2007.

Alinghi: Is SNG’s sailing team, owned by Ernesto Bertarelli.


Competitor Meeting. Alinghi Base, Valencia, 2 March 2009 -  www.alinghi.com ©   Click Here to view large photo
ACM: Is America’s Cup Management, the event organizing body for the 2007 and 2010 America’s Cups. It is also owned by Ernesto Bertarelli.

The America’s Cup: Named after the yacht America, which came to England from New York in 1851 and won a race around the Isle of Wight. The trophy was named in its honor. The 2010 event is the 33rd Match in the long and colorful history of the competition.

Deed of Gift: Is the document drawn up in 1887 by the last surviving owner of the yacht America, George Schuyler. He donated the Cup for 'perpetual Challenge Cup for friendly competition between foreign countries'. Accordingly, the America’s Cup is not a sports-property, but must be managed in accordance with trust law on behalf of its beneficiaries i.e., all those involved in the competition.

ISAF:
International Sailing Federation, the sport’s world governing body. Entered into an initially secret agreement with SNG abrogating many of its powers to a competitor and limiting the rights of BMW ORACLE Racing.

Boies, Schiller & Flexner: Based in New York City, Boies, Schiller & Flexner has grown to over 230 lawyers practicing in offices strategically located throughout the U.S. The Firm has tried more than 350 cases before juries and judges in federal and state courts and regularly serves as lead counsel on complex, high profile global matters. In addition, the Firm has a fast-growing corporate practice. For more information about BS&F, please visit www.bsfllp.com


by BMW Oracle Racing Media and Richard Gladwell


  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=62616

1:13 AM Tue 27 Oct 2009GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.

Click for further information on
2013 America's Cup

Related News Stories:

16 Apr 2014  America's Cup: Expected de Ridder penalty should be reduced
14 Apr 2014  America's Cup: Dean Barker's Blog - A sail with the Duke and Duchess
12 Apr 2014  America's Cup: Coutts claims ISAF Jury on a crusade, backs Kiwi report
10 Apr 2014  America's Cup: Two Kiwis escape hometown action in AC45 rules ruckus
03 Apr 2014  34th America's Cup: A Match of three weeks - Part 3 - Under the Pump
01 Apr 2014  34th America's Cup: A Match of three weeks - Part 1 - Regaining time
08 Mar 2014  Fast foils-a conversation with Paul Bieker, part two
03 Mar 2014  America's Cup- Fast foils-a conversation with Paul Bieker, part I
19 Jan 2014  America's Cup: CNN Mainsail Down Under on the state of the Cup
16 Jan 2014  America's Cup: Jobson goes one on one with Jimmy Spithill (Part 5)
MORE STORIES ...






News - New Zealand & the World

Spectacular performance by Bakewell-White maxi early in first race *Feature by Richard Gladwell/Sail-World.com/nz
The revamped Bakewell-White supermaxi, Rio 100 (Manouch Moshayedi) turned in an impressive performance in the opening stages of the Yates Cup. Sailing against a variety of benchmarks which included a a Volvo 70, a Botin 80 and an ORMA 60, Rio 100 came from behind to enjoy an impressive lead over the monohulls after 90 minutes of sailing. ... [more]  

America's Cup: Team New Zealand responds to Venue rumours *Feature by Richard Gladwell/Sail-World.com/nz
Emirates Team New Zealand has responded to reports published in Bermuda and mainland USA, that Bermuda has been selected as venue for the 35th America's Cup. In a media release sent mid-afternoon, New Zealand time, Emirates Team NZ CEO Grant Dalton said in response to unconfirmed reports that Bermuda had won the right to host the 35th America’s Cup, that the team had not been told of a decision ... [more]  

RMSIR 2014 – Penang to Langkawi. An espresso race by Guy Nowell, Sail-World Asia, Langkawi, Malaysia
A slow start for the last coastal race of the Raja Muda is almost a tradition. ‘L’ flag and ‘follow me’ up the course until the RO finds conditions that suit. Equally almost traditional is that this is the blowiest leg of the regatta. 50nm and another straight line to the finish, except this one really is a straight line, with no sand bars or other deviant diversions. ... [more]  

Amidst a 10% growth report on having issued over 9000 certificates worldwide in 2014, the recent Annual General Meeting of the Offshore Racing Congress is pleased to announces numerous improvements approved for use in the ORC Rules and policies for 2015. ... [more]  

The start of Leg 2 offered all the wind conditions you could want. I will not lie: I was pretty nervous to begin leg 2 of the Volvo Ocean Race (Mom called it ‘Stage Fright’); I think the whole team was pretty nervous. Here we are, having confidently completed the first leg of the Volvo Ocean Race—after 27 days at sea! ... [more]  

The ISAF Sailing World Cup Final in Abu Dhabi, United Arab Emirates is set to be 'an experience of a lifetime' according to American Women's 470 sailor Briana Provancha. Some of the world’s top Men’s and Women’s 470 teams will make up the individual fleets with some excellent racing on the cards. ... [more]  

After finishing third in the annual RC44 match race championships, Team Nika seem to have got a taste for the podium. It was a tough day on the water for the start of fleet racing at the RC44 Oman Cup, with many teams struggling for consistency. ... [more]  

RMSIR 2014 – Patience is a virtue by Guy Nowell, Sail-World Asia, Penang, Malaysia
Today PRO Jerry Rollin earned himself a medal – for patience. The scheduled 1230h start time for the Penang Inport Races came and went, and then receded over the horizon. Sitting there with no breeze on a glass-calm sea some of us wondered whether we needed a watch or a calendar to track the passing time. ... [more]  

While more modifications are being mooted for the champion supermaxi yacht Wild Oats XI as part of her preparation for next month’s Rolex Sydney Hobart yacht race, a high-profile new member of the team was revealed on Sydney Harbour today. ... [more]  

November 20, 2014: The KIWI also staggered as Dairy prices were hit by the prospect of increased competition arising from China Free Trade Agreements. The NZD fell to 0.7860 and may face some short term pressures mellowed by interest rate differentials. ... [more]  

Wild Oats XI and Audi are ready to give the 2014 Rolex Sydney Hobart a shot! Photos by Andrea Francolini. ... [more]  

After a challenging start with a postponement on Nov 6th due to forty knot winds that created unsafe racing conditions and a lack of wind causing a delay on Nov 7th the 2014 WineWorks Marlborough Sauvignon Blanc Yacht Race commenced at mid-morning under sunny skies and building wind. ... [more]  

Volvo Ocean Race: Meek's tips pay dividend in Leg 2 squalls and calms *Feature by Bob Fisher, Cape Town, South Africa
The seven competing boats in the Volvo Ocean Race 2014-2015 roughly gathered at 6pm local time (1600 Zulu) in a south-easterly wind that peaked at 30-40 knots, which had the local habit of dying away to nothing in places along the shoreline in the lee of Table Mountain. The clever skippers has sought advice from Geoff Meek, a local with a mass of experience ... [more]  

Come and join Jo Aleh and Polly Powrie (2012 London Olympic Gold Medalists and 2013 International female Sailors of the year) for two hours of match racing on the Waitemata Harbour followed by drinks and canapés at Emirates Team NZ base with Jo and Polly along with some key Team NZ members. Support the Kiwi SKUD Kiwi SKUD Sailing team aiming to represent NZ at the 2016 Paralympics. ... [more]  

Abu Dhabi Ocean Racing (ADOR), the Emirate’s entry into the Volvo Ocean Race 2014–15, cast off on the next leg of the epic, round-the-world race on Wednesday evening hoping to complete a hat-trick of victories in the best place possible – the team’s home port of Abu Dhabi. ... [more]  

Over 600 scientists gathered in Barcelona for the second International Ocean Research Conference have this evening named the skippers in the Barcelona World Race, the first and only double-handed, round the world regatta with no stops, as scientific agents during their upcoming circumnavigation of the globe, departing from the Catalan capital on December 31st. ... [more]  

Newport's Royal Prince Alfred Yacht Club will again welcome top international youth sailors to its doors for the 22nd Harken International Youth Match Racing Championship to be sailed on Pittwater commencing with Round Robin racing starting Wednesday 19 through to Sunday 23 November. ... [more]  

Skippers of the seven boats in the Volvo Ocean Race fleet, which set out for the 6,125 nautical mile (nm) Leg 2 from Cape From the very start on Wednesday (1800 local/1600 UTC), the sailors were given a taste of things to come with gusts of up to 35 knots kicking up a procession of white-capped waves. It was a question of 'don't break your boat' as most opted for conservative sail choices, whil ... [more]  

An invigorated, rested and relatively relaxed crew on Team SCA led the Volvo Ocean Race fleet from Cape Town late this afternoon at the start Leg Two of the Volvo Ocean Race to Abu Dhabi. The 6,125-mile leg will provide a large variety of conditions and will require good seamanship and good navigational choices. ... [more]  

A whole host of Olympic heroes and World Champions will fight it out in the Nacra 17 at the inaugural ISAF Sailing World Cup Final in Abu Dhabi, United Arab Emirates from 26-30 November 2014. The 17-boat Nacra 17 fleet features an abundance of Olympians with no less than 18 appearances stemming from Atlanta 1996 within the 17-boat fleet of 34 sailors. ... [more]  

The ISAF Sailing World Cup Final Finn fleet is made up of some exceptional talent with Great Britain's Ed Wright and Pieter Jan Postma (NED) coming in to Abu Dhabi, UAE with good form. Wright has been a permanent fixture on World Championship and ISAF Sailing World Cup podiums in recent years. ... [more]  

The RC44 Oman Cup opened with the season’s final day of match racing. Defending champions Team Aqua held a slim one-point lead over Synergy Russian Sailing Team who were fighting for the trophy they last won in 2012. Vladimir Prosikhin’s Team Nika started the day in third, with Hugues Lepic just two-points adrift in fourth and keen to get the French flag onto the podium. ... [more]  

Leg 2 of the Volvo Ocean Race is underway. Catch ther replay here, if you missed the 90 minutes of racing action in Cape Town. The sailing is spectacular! ... [more]  

November 19, 2014: The GDT dairy auction overnight showed prices falling 3.1% from two weeks ago, this pushed the NZD down from overnight highs nearing 0.7950. The NZD pushed lower on all crosses after the auction to trade 0.6312 and 0.5050 against the EUR and GBP. ... [more]  

Visiting Cape Town was more than just a stopover in the Volvo Ocean Race for Team Alvimedica, but was an opportunity to really get to know the people and the culture of the 'mother city.' Take a look at how the team get involved while in Cape Town from meeting Archbishop Desmond Tutu to visiting heart surgery patients at the Red Cross War Memorial Children's Hospital. ... [more]  

15th Ambassadors Cup - Brazil claims victory by May Ling Teo, Changi Sailing Club
Light winds didn’t dampen the enthusiasm of the 20 ambassadors who competed in the 15th annual Changi Sailing Club’s Ambassadors’ Cup, nor did the gentle breezes take the edge off the competitive spirit of the skippers and the crew who competed for the prestigious prize. ... [more]  

Star Sailors League Finals 2014, Nassau (Bahamas) - Robert Stanjek will be attempting to bring a stunning 2014 season to a fittingly impressive conclusion in the big upcoming Finals in Nassau in two weeks’ time. The second half of the year has proved particularly rewarding for the German sailor. ... [more]  

After what seemed to have been a week of typhoon conditions (minus the tropical warmth), the weather relented and Auckland put on one of those stunning evenings that make you careless of the foregoing misery. A dozen Etchells enjoyed some close (at times, perilously close) racing on a longish course, set to take full advantage of the fresh Westerly. ... [more]  

Two English born Finn sailors, once coach and student, will draw swords at the ISAF Sailing World Cup in December on Port Phillip. Both are gunning for national team selection and a chance to represent their country at the 2016 Rio Olympic Games, Ed Wright sailing for Great Britain and Oli Tweddell representing Australia, where he’s lived for the past decade. ... [more]  

Yachting Australia has announced the appointment of experienced and respected sports administrator Matt Carroll to the role of Chief Executive Officer. Matt commences with Yachting Australia on Monday 24 November 2014, replacing Phil Jones who is leaving the organisation after 17 years at the helm. He comes from a background of roles in Australian and Japanese Rugby and Rugby World Cup. ... [more]  

The Alpari World Match Racing Tour (AWMRT) has announced the addition of the Congressional Cup to the 2015 World Championship Tour schedule. The announcement follows this year’s 50th anniversary of the historic Congressional Cup event, organised by Long Beach Yacht Club, in Long Beach, California. ... [more]  

Top Volvo Ocean Race correspondent and analyst, Mark Chisnell writes a regular report for B&G on the current race and trends he sees developing. Here's his preview of Leg 2: Leg 2 gets underway on Wednesday afternoon. This is a tough one, it’s both long and strategically tricky, crossing from the Atlantic to the Indian Ocean, from the Southern Hemisphere to the North. ... [more]  

18ft Skiffs: Smeg's second Red-Line run down Sydney harbour in 40kts *Feature by Michael Chittenden, Sydney harbour
In a sport which generally lacks characters, the 18ft skiffs have an over-supply. David Witt is one of those, underlined by taking his boat and crew out last Sunday daring the rest of the Sydney fleet to race in a breeze of 30-40kts, on an otherwise ideal day on Sydney Harbour. ... [more]  

Volvo Ocean Race: Start Wednesday - Cyclone season awaits Leg 2 fleet
Airwaves Noumea PWA Dream Cup - Opening day in New Caledonia
Volvo Ocean Race: Leg 2 Media Conference - Full replay *Feature
Volvo Ocean Race - Team Vestas Wind ready to race
Volvo Ocean Race: Young sailors get behind ADOR ahead of Leg 2
18fters: Getting through the 'Death Zone' in a 35kt breeze *Feature
Volvo Ocean Race: Sam Davies speaks openly about the first leg *Feature
ISAF Sailing World Cup Final: Exciting 49er and 49erFX action expected
Collinson FX Market Commentary: Nov 18 - Japan in recession, Kiwi +ve
America's Cup: Significant changes made to Protocol, but issues remain *Feature
Raja Muda 2014, race 2 - More holes than Blackburn, Lancashire
Stoke Beer 18ft Skiff Auckland Champs: Knight Frank lead after 5 races
ISAF Sailing World Cup Final - RS:X elite Abu Dhabi bound
RC44 Oman Cup - Grand final showdown on the horizon
Visit Doyle Sails New Zealand at METS 2014
Top Kiwi Finn sailor debuts in the 2014 Star Sailors League Finals
Adventures of a Sailor Girl: News and interviews from Nov 16 show *Feature
Collinson FX Market Commentary: Nov 15 - The beaches beckon
Josh Junior wins the 2014 New Zealand Match Racing Championships
49er and FX Intergalatics, Brazil: Kiwi stars shine in both skiffs
Raja Muda Selangor International Regatta 2014 – Opening strokes   
Australian 18ft Skiffs: 40kt winds cancel race but Witt sails + Video   
Volvo Ocean Race: Abu Dhabi are the Kings of Cape Town   
Volvo Ocean Race: In Port races do count *Feature   
Volvo Ocean Race: Abu Dhabi rules in Cape Town In Port Race   
Raja Muda Selangor International Regatta 2014 – the prequel.   
Volvo Ocean Race - Team SCA third in Cape Town In-Port Race   
A Sailor's Dream Home in the beautiful Bay of Islands - Auction 22 Nov   
Volvo Ocean Race: Cape Town In Port Race video and Media Conference *Feature   
2014 - 15 Volvo Ocean Race - The thinking trio   
Moth Worlds 2015: Sliced bread, sheep stations, awe and reverence *Feature   
Volvo Ocean race: Images from the Practice racing in Cape Town *Feature   
Volvo Ocean Race: Big breeze for Practice Racing in Cape Town *Feature   
Volvo Ocean Race - All-clear from piracy threat   
Volvo Ocean Race - Team SCA confirms Leg 2 crew   
ISAF Sailing World Cup Final - Laser and Laser Radial sailors all set   
Collinson FX Market Commentary: Nov 14 - US Equities unchallenged   
Bestspeed App: Has the performance potential been achieved?   
NZ Match Racing Champ: Day 2 – The Fast, The Fun and The Killer Whales   
Dual Olympian Krystal Weir announces retirement from Olympic Sailing   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News







Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL NEW NZ
LocalAds   DE  ES  FR  IT