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New Zealand sue Alinghi over Cup delay

  • Story Highlights
  • Team New Zealand launch two legal actions over America's Cup delays
  • Swiss defending champions Alinghi are being sued by NZ for compensation
  • Legal wranglings have led to the postponement of the 2009 America's Cup
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LONDON, England -- Team New Zealand is suing defending champion Alinghi in two U.S. courts to seek compensation for the delay in staging the next America's Cup.

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Team New Zealand won the Louis Vuitton Cup in 2007 but lost to Alinghi in the America's Cup series.

The first action has been launched in the New York State Supreme Court under a breach of contract argument, with Team New Zealand saying it entered the 33rd America's Cup with the promise that it would be sailed in Valencia, Spain, in July 2009.

The other suit was filed in a U.S. District Court under American anti-monopoly laws, stating Alinghi abused its power "to stifle competition" by accepting a Spanish yacht club's challenge to "gain an unfair competitive advantage."

"I want to say up front that neither of these cases are what we wanted to be doing," Team New Zealand managing director Grant Dalton told Associated Press. "We are not about litigating, we're about sailing and fighting on the water fairly. We were forced into this situation."

It's the latest twist in a complicated legal battle which is threatening the future of yachting's oldest and most famous competition.

America's Cup organizers announced last November that the scheduled 2009 regatta had been postponed because of disagreements between Alinghi and prospective challengers.

Alinghi has already lost an action in the New York State Supreme Court filed by the Golden Gate Yacht Club who back the powerful BMW Oracle Racing syndicate.

Swiss syndicate Alinghi has appealed the ruling, but faces the prospect of a one-on-one series against BMW Oracle Racing later this year for the oldest trophy in international sport.

There's a chance there won't be another traditional America's Cup regatta until 2011, forcing syndicates to stretch their budgets up to twice as long as anticipated, Dalton said.

Alinghi lawyer Lucien Masmejan said in a statement that Team New Zealand's lawsuits "are totally without merit, wildly miss the target and will be defended rigorously.

"We share the sailing community's frustration in the delays affecting the America's Cup but Alinghi, as trustee, is duty bound to defend its position in the current legal action and to preserve the integrity of the America's Cup.

"We have repeatedly made it clear that Alinghi welcomes a swift court resolution and wants to get the action back on the water as soon as possible." E-mail to a friend E-mail to a friend

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