News Home Cruising Photo Gallery Video Gallery : Team New Zealand sue Alinghi

Team New Zealand sue Alinghi

'New York State Supreme Court'    Event Media
Latest on the America's Cup row is that Team New Zealand is reported to have filed two lawsuits against Alinghi of Switzerland, seeking financial compensation 'in the tens of millions of euros' after Alinghi's organising body ACM delayed the next America's Cup indefinitely.

Emirates Team New Zealand (ETNZ), holders of the America’s Cub sailing trophy from 1995-2003, today filed lawsuits in New York Supreme Court and United States District Court charging current Cup defender Alinghi, the Swiss team owned by Italian businessman Ernesto Bertarelli, with deliberately delaying the next America’s Cup challenge to crush competition.

The Kiwi sailors are seeking financial compensation from Alinghi, Bertarelli and Bertarelli-controlled AC Management for breaches of contract and trust, as well as violations of U.S. antitrust law.

In 2003 Alinghi defeated Team New Zealand at Auckland, the 32nd America’s Cup challenge since the underdog schooner America bested 15 British yachts off the Isle of Wight in 1851. The 33rd defense of the world’s oldest international sports trophy was to have been held at Valencia, Spain, in 2009, but a series of actions by Alinghi have made it more likely that boats will not be in the water again until 2011.

“The delay in staging the next America’s Cup is harming every challenging syndicate as they have to stretch budgets developed and approved for a two-year campaign over three or four years,” said ETNZ managing director Grant Dalton. “We have a duty to protect the investment in the team over many years by our loyal supporters. We also have an obligation to honor the trust shown by the hundreds of thousands of New Zealanders who have supported the team through the years.”

Boies Heads Legal Team

Heading the ETNZ legal team is attorney David Boies of New York-based Boies, Schiller & Flexner LLP. The legal actions are being taken in New York in compliance with the terms of the Deed of Gift, which in 1887 set forth the rules of the competition, stating, “This Cup is donated upon the conditions that it shall be preserved as a perpetual Challenge Cup for friendly competition between foreign countries.” The document has been amended twice by the New York Supreme Court in 1956 and 1985.

“ETNZ and other racing syndicates have made significant financial commitments based on the assurances and legal obligation of Mr. Bartarelli’s organization to defend the Cup in 2009,” said Boies. “He has violated both the spirit and letter of the Deed of Gift at every turn, and is holding this venerable competition hostage in an attempt to control the substantial financial benefits of the event and eliminate competition.”

New York State Supreme Court Action

The first action, filed in the Supreme Court of the State of New York, claims damages for breach of contract arising from an agreement made as a pre-condition of ETNZ’s entry to the 33rd America’s Cup. The agreement involved an understanding entered into by Ernesto Bertarelli on July 25, 2007, that the America’s Cup would go ahead in 2009.

“That assurance was a pre-condition of our entry,” Dalton said. “Then on November 22 last year, before the Supreme Court of New York had even issued judgment on a challenge by Golden Gate Yacht Club (representing the American team BMW Oracle, headed by Oracle founder Larry Ellison) to the validity of the Spanish challenge, Bertarelli’s AC Management announced that the Cup would be delayed.

“Mr. Bertarelli had the chance to accept a reasonable proposal from Oracle, which was also signed by the majority of the challengers, and which would have allowed the America’s Cup to be held in 2009, said Dalton. “He would not do so.”

The action also claims that Societie Nautique de Geneve, the “yacht club” Bertarelli set up as trustee of the Cup, through the actions of the other defendants has committed breaches of its fiduciary duties that trustees owe to maintain the standing and integrity of the Cup.

U.S. District Court Action

The second action has been filed in the Federal Court under United States anti-trust legislation.

ETNZ contends that Alinghi and the other defendants, abusing the power conferred to the defender under the Deed of Gift, has acted to stifle competition for the Cup and for the right that goes with it of conducting future events by accepting a paper yacht club of no substance - - CNEV - - as the challenger of record, thereby enabling it to impose rules for the next event that were completely one-sided and which were designed to give Alinghi an unfair competitive advantage.

ETNZ also contends that Alinghi’s subsequent conduct in refusing to agree to a reasonable settlement of the BMW Oracle case, the unilateral and indefinite delaying of the event from 2009 was all designed to and had the effect of increasing other teams’ costs, including those of ETNZ.

We Would Rather Be Racing

“We are heading to court reluctantly, but have no option,” said Dalton. “We would rather be racing.”

Dalton continued: “We have to ensure that when the next America’s Cup is held, Emirates Team New Zealand is still in very good shape and ready for the battle on the water. By the time AC Management announced that the 33rd America’s Cup would be delayed, we had put together a comprehensive program for 2008, with ETNZ members competing in a number of European regattas. And we had already done an enormous amount of work on the design of the new 90ft AC class boat. Design work is continuing, although with less urgency,” said Dalton.

“ETNZ is fortunate in having the full support of our sponsors, the New Zealand Government, and team members. However the delay does come at a price and it seems prudent for the team to seek financial compensation to cover additional campaign costs and damage to our brand name and reputation and to the event in which we compete, the standing of which affects our ability to raise funds.”

To read the Complaint and Jury Demand click here?nid=42418

To read the Complaint click here?nid=42418

by Media Release


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

6:31 PM Thu 6 Mar 2008 GMT

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:

09 Aug 2014  America's Cup: Former Artemis crew member says danger is being ignored
27 May 2014  America's Cup: Oracle Team USA under stress
23 May 2014  America's Cup: Oracle and Team NZ designers reveal AC72 secrets
22 May 2014  America's Cup: Artemis death verdict 'result of an human act'
10 May 2014  A year after the Artemis incident, the sailors tell of the pain
01 May 2014  America's Cup: Oracle and Team NZ tech insights - Free lecture tonight
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

News - USA and the World

A complete recap of the most successful Melges 20 World Championship by International Audi Melges 20 Class Association,

ISAF Santander - Upwards path for Austrian women's 470 crew + video by Luissa Smith, International 470 Class Association,

2014 Rolex Big Boat Series - Farr 40 Day 4 by William Wagner, San Francisco

ISAF Sailing World Championships Santander 2014 – Images by Dan Ibsen
Santander Worlds – already a spectator success
ISAF Sailing World Championships Santander 2014 - Day 3 morning report
Volvo Ocean Race 2014-15 - Tales from the extreme
Volvo Ocean Race: Latest starter wins opening race
2014 J/70 World Championship - Healy, Abdullah, Becker and Borges win
2014 Rolex Big Boat Series - Full-blown, once again
ISAF Worlds - Americans jump up Laser and Laser Radial leaderboard
2014 Rolex Big Boat Series - Farr 40 Day 3
America's Cup: Luna Rossa sailing with two foiling AC45's + Video
Extreme Sailing: Emirates Team NZ retain second overall
ISAF Sailing Worlds, Santander - Rio Olympic Laser spots snapped up
Rolex Swan Cup - All set for final showdown
Upper Midwest sailors need help to take it to the next level
ISAF Sailing World Championships - RS:X action begins in Santander
ISAF Sailing Worlds, Santander - Americans rise in Laser and Radial
Extreme Sailing Series - A remarkable penultimate day’s racing + Video
Marseille One Design - GC32 GDF Suez unstoppable in the light
Rolex Swan Cup - Day 3 images by Carlo Borlenghi
ISAF Sailing World Championships - Images of the leaders in Santander
Rolex Big Boat Series - Good day for Double Trouble   
Rolex Big Boat Series - Day 2 images by Erik Simonson   
Royal Cup Marina Ibiza - TP52 fleet ready for tricky race tracks   
Rolex Big Boat Series - Plenty maintains lead   
2014 Asia Pacific Student Cup - Count down begins   
Extreme Sailing Series: Live coverage of Day 3 - view here   
Volvo Ocean Race 2014-15 - Going away   
Volvo Ocean Race 2014-15 - Practice makes perfect   
2014 J/70 World Championship - Contrasting conditions on Day 4   
Rolex Big Boat Series - 50 years of big boat racing: a retrospective   
2014 Rolex Big Boat Series - Day 2   
Snipe Western Hemisphere and Orient Champ: Rios takes the Championship   
Volvo Ocean Race: Leg Zero signals start of the significant racing   
Extreme Sailing Series: Physically demanding racing for BAR on Day 2   
Emirates Team NZ: Holding second overall after Day 2 in Istanbul   
Extreme Sailing Series: A force to be reckoned with in Istanbul +Video   
ISAF Sailing Worlds - Day 1 images by Jesus Renedo and Pedro Martinez   
Marseille One Design: GC32's Armin Strom storms ahead on day 2 + Video   
ISAF Sailing World Championships - Racing underway in Santander +Video   
ISAF Sailing Worlds, Santander - Erika Reineke claims Radial race win   

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  

Switch Default Region to:

Social Media





New Zealand

United Kingdom

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World






Contact Us

Advertisers Information

Submit news/events

Search Stories/Text


Advertisers Directory

Newsletter Archive

Photo Gallery


Banner Advertising Details

Newsletter Subscribe

Video Gallery





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.
LocalAds   DE  ES  FR  IT