Oracle, Alinghi back to court as talks collapse

AFP Global Edition | 2010-01-13 18:10:51

<div><p>US challenger Oracle launched a new legal case against Swiss defender Alinghi on Wednesday, just weeks before the scheduled start of their America's Cup duel, after negotiations between them broke down.</p><p>It was not immediately clear what effect the latest move would have on the plans for the 33rd America's Cup, set to start on February 8 in the Spanish port of Valencia.</p><p>Oracle said it had asked the Supreme Court of the State of New York to verify if Alinghi had infringed the competition's nationality rules by allegedly using US-made sails for its catamaran.</p><p>The two sides held talks in Singapore on Tuesday and Wednesday to try and reach a negotiated settlement on the issue, but "no mutual agreement was reached," Oracle, represented by the Golden Gate Yacht Club (GGYC) of California, said in a statement.</p><p>"This is very disappointing and frustrating," said Oracle skipper Russell Coutts.</p><p>"On three separate occasions during the two days of talks there was a final draft of an agreement. GGYC was ready to sign. (Alinghi's) negotiators were prepared to sign, but it seems they were not given permission."</p><p>Alinghi, whose home club is the Societe Nautique de Geneve (SNG) responded by accusing Oracle of seeking to "derail" the America's Cup.</p><p>"Oracle has already successfully disqualified 18 teams through the US courts to gain access to the match, now they are seeking to win the Cup without ever racing for it," Alinghi skipper Brad Butterworth said in a statement.</p><p>"This latest lawsuit has come as a shock given we were planning a further meeting to finalise discussions today, it demonstrates extreme bad faith. Clearly they are not ready to race."</p><p>Under the Deed of Gift, the 19th-century rules that govern the oldest competition in international sport, the participating vessels must be constructed in the country where the sailing club which they represent is located, which in Alinghi's case is Switzerland.</p><p>But Oracle charges Alinghi's sails were made in the United States.</p><p>Alinghi insisted its yacht "has been constructed in Switzerland in compliance with the provision of the Deed of Gift", including the 3DL sails, which were "constructed in a sail loft in Villeneuve, Switzerland" and are subject to Swiss intellectual property rights.</p><p>The new development came as Oracle's trimaran - with its 50-metre fixed-wing sail - and Alinghi's giant catamaran were to begin training off Valencia this weekend for the 33rd edition of the race.</p><p>Alinghi said it "is ready to race" as scheduled from February 8.</p><p>"We do not want the outcome of the America?s Cup determined in court," said SNG vice-commodore Fred Meyer.</p><p>Alinghi and Oracle have been arguing over the rules of the America's Cup in court since Alinghi won the last edition of the world's most prestigious yachting event in Valencia in 2007.</p><p>The New York Supreme Court ruled in April that the Cup should be settled by a one-on-one multihull duel between the two sides next February instead of the traditional fully-fledged regatta involving several teams.</p><p>It also ruled last month that the event must be held in Valencia, rejecting an appeal by Alinghi which favoured the Gulf emirate of Ras al-Khaimah.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=66842359&bid=informcom" /></div><div id="copyright"><div>


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