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New York Court does not grant Injunction

by 33rd America’s Cup media 11 Sep 2007 01:42 PDT

More good news for SNG as New York Court does not grant injunction

After a brief hearing in the New York Supreme Court today before Justice Cahn, the Société Nautique de Genève (SNG) is pleased to announce that the Judge did not grant the Golden Gate Yacht Club’s (GGYC) application for an injunction, and instead ordered the parties to submit written legal arguments designed to dispose of the case in the shortest possible time. The Judge set the 22 October as the date to hear legal arguments to resolve the central issue, which focuses on the validity of Club Náutico Español de Vela (CNEV), the Spanish challenge, accepted by the SNG after winning the 32nd America’s Cup.

The Spanish challenge, CNEV, also advised the Court that it will intervene in the case as a party so as to reinforce and confirm its legal standing as Challenger of Record for the 33rd America’s Cup.

Importantly, this is the second successful legal outcome in only a matter of days, following the America’s Cup Arbitration Panel’s ruling over the weekend that declared legitimate the Challenger of Record, and that the 33rd Protocol complies with the Deed of Gift.

“Naturally we are pleased with this outcome which is another welcome positive result in this unfortunate legal process,” said Hamish Ross, Alinghi General Counsel, adding: “As we had asked the Court, SNG will be submitting, as planned, its motion to dismiss the case entirely, and we look forward to having an opportunity to clear this matter up as quickly as possible on the date set by the Court. We now need to draw a line under the uncertainty and damage created by the Golden Gate Yacht Club and BMW Oracle Racing’s actions and focus on the future.”

Meanwhile work continues apace on the 33rd Americas Cup in Valencia following the first Competitors Commission meeting on Friday of last week and with further meetings being scheduled. This period of consultation with the five registered challengers runs until the end of October when the new class rule will be published, ensuring that the America’s Cup remains at the pinnacle of international sailing.

Court Orders Date for America’s Cup Hearing (from Jane Eagleson, BMW ORACLE Racing)

The Supreme Court of the State of New York today ruled that it would hear argument on October 22 on the validity of the challenge that has produced the proposed protocol for the next America’s Cup.

“We are very pleased with this decision, as we are keen to see this issue properly resolved with a minimum of further delay,” Tom Ehman, Head of External Affairs for GGYC’s team, BMW ORACLE Racing, said.

“During the hearing, the court suggested that the parties engage in mediation to resolve all disputes. This is a course that we continue to support,” Ehman said.

“Our strong preference remains to negotiate a solution. If this is not possible, today’s decision provides for swift resolution through the courts.”

He said the team strongly favors an America’s Cup regatta like the last one sailing in monohulls, and had supported seeking a quick legal resolution so that all participants could know the outcome of the case as soon as possible.

The San Francisco club alleges that the current America’s Cup Defender, Société Nautique de Genève (SNG), is in breach of its duty under the Deed of Gift that governs the Cup. It says SNG has accepted a challenge from an invalid contender, and is seeking to impose an unprecedented one-sided set of rules that unfairly advantage the defender to the detriment of all other competitors.

Ehman said that on October 22 the court would hear argument as to the merits of the case and that a judgment could be expected shortly thereafter.

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