Statement from America's Cup holder on Fiduciary Duty challenge

by Alinghi Media and Richard Gladwell on 27 Oct 2009
The Defender of the America's Cup and current Trustee, Societe Nautique de Geneve has reacted angrily to the Breach of Fiduciary Duty (BFD) action lodged today in the New York Supreme Court.

In a statement issued just hours after the announcement from Golden Gate YC announcement of the new legal action, SNG commented:

Geneva, Switzerland - (2009-10-27) 'By filing their eighth legal action against the Defender of the America's Cup in two years, Larry Ellison and his Golden Gate Yacht Club (GGYC) have demonstrated yet again that their true intention is to win sailing's most prestigious trophy in court instead of on the water. After failing in their attempts to circumvent the terms set in the governing Deed of Gift, Ellison is now seeking to snatch the Cup from Société Nautique de Genève (SNG) with a new round of baseless allegations,' said Fred Meyer, Société Nautique de Genève Vice-Commodore.

'As two-time winner of the America's Cup and organiser of what was widely considered the most successful America's Cup event ever in Valencia, Spain, in 2007, SNG and Alinghi will continue to fight for their legitimate rights in order to promote the sport of sailing around the world. We hope that GGYC will abandon this unsportsmanlike conduct and either join the competition on the waters off Ras Al Khaimah this February or let other teams who want to participate challenge for the Cup,' he concluded.

Alinghi team skipper Brad Butterworth said: 'BMW Oracle should clean up their unsportsmanlike behaviour with a dose of saltwater and sunshine and challenge for the Cup on the water. Otherwise they should stand aside and let other teams compete.'

'The complaint is an affront to the America's Cup, to the UAE, to our country's relationship with an important ally, and to the judicial process. It is just a PR stunt. There is nothing in the complaint that hasn't been the subject of prior or pending legal proceedings. Basically, GGYC doesn't want to race SNG on the water after it disenfranchised 19 other clubs from competing in an elimination series and dislocated hundreds of sailors and participants in the sailing industry,' concluded lead counsel for the Société Nautique de Genève, Barry Ostrager of Simpson Thacher & Bartlett.'

Earlier GGYC, and its sailing team, BMW ORACLE Racing, issued a statement saying that they remained committed to sailing the 33rd Match on the dates in February 2010 set by the New York Supreme Court. 'There is no desire by this action to change Alinghi’s role as SNG’s sailing team and defender,' said the GGYC statement.

In a 20 page document lodged in the New York Supreme Court, Golden Gate Yacht Club made allegations of the various actions undertaken by the Defender, which also has the dual role of Trustee of the America's Cup requiring it to uphold the conditions of the America's Cup on behalf of its donor.

Amongst the claims made by Golden Gate Yacht Club as to the shortcomings of Societe Nautique de Geneve were were:

• 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

Allegations were also made involving commercial transactions by Ernesto Bertarelli and Bertarelli family interests in both Ras al Khaimah and Valencia, the proposed and past venue of the America's Cup.

The parties are back in the New York Supreme Court on 27 October for a Hearing before Justice Shirley Kornreich on the Rules for the Match and SNG's selection of a venue for the Match. The latest action is expected to go to a trial on a date yet to be set. The Swiss yacht club have 30 days to respond to the motion lodged today.