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Book Arbitration in the America's Cup : the XXXI America's Cup arbitration panel and its decisions FAIRE, John (Ed.), et al. Reference FAIRE, John (Ed.), et al. Arbitration in the America's Cup : the XXXI America's Cup arbitration panel and its decisions. The Hague : Kluwer Law International, 2003 Available at: http://archive-ouverte.unige.ch/unige:24811 Disclaimer: layout of this document may differ from the published version. 1 / 1 ARBITRATION IN THE AMERICA'S CUP THE XXXI AMERICA'S CUP ARBITRATION PANEL AND ITS DECISIONS JOHN FAIRE 1 MICHAEL FOSTER 1 DONALD MANASSE HENRY PETER (ED ,) 1 DAVID TOMPKINS KLUWER LAW INTERNATIONAL THE HAGUE I LON DON 1 NEW YORK A C. I. P. Catalogue record for thi. book i. available from the Library of Congress. ISBN 90 411 2199 4 Published by Kluwer Law International, P.O . Box 85889, 2508 CN The Hague, The Netherlands. [email protected] hltp://www.kluwerlaw.com Sold and distributed in North, Central and South America by Aspen Publishers, Inc. 7201 McKinney Circle, Frederick, MD 21704, USA Sold and distributed in ail other countries by Turpin Distribution Services limited, Blackhorse Road, Letchworth, Herts, SG6 1 HN, United Kingdom Printed on acid-free paper Ail Rights Reserved © 2003 Kluwer Law International Photo cover: © 200 ~ Kaoru Soehata / Louis Vuitton No port of this work may be reproduced, slored in a retrieval system, or transm itted in any form by a ny means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without wr itten permission From the Pub li sher, with the exception of any material supplied specifi­ colly for the purpose of being entered and executed on a compu ter system, for exclusive use by the purchaser of the work. Coverdesign by DINGO, Peter Oosterhout, Diemen-A msterdam, The Netherlands Printed in The Nethe rl ands. Table of Contents Table of Abbreviations IX 1. Introduction 2. Deed of Gift of 24 October 1887 15 3. "The Mercury Bay Boating Club Inc. v. San Diego Yacht Club", (26 April 1990) (76 N.Y. 2d 256; 557 N.E. 2d 87; 557 N.Y.S. 2d 851 (1990)) 19 4. The Protocol Governing the XXXI America's Cup 47 4.1 The Protocol of 2 March 2000 (Conso1idated Version) 48 4.2 Clarification #1 ta the 2 March 2000 Protocol Governing the XXXI America's Cup (30 October 2002) 73 5. The America's Cup Arbitration Panel Rules of II February 2001 75 6. The America's Cup Arbitration Panel Decisions XXXI America's Cup 81 6.1 ACAP 00/6: Royal New Zealand Yacht Squadron & Société Nautique de Genève 82 Deed of Gift - eligibility ta challenge - annual regatta on the sea or an arm of the sea - validity of SNG challenge - no undertaking required as to where next match held. 6.1.1 Decision (5 December 2000) 82 6.1.2 Reason for Decision and Decision (17 December 2000) 84 6.2 ACAP 00/7: Société Nautique de Genève (28 February 2001) 93 Interpretation of Deed of Gift - validity of Trustees Resolutions on nationality - meaning of "domiciled in" and "a principal place ofresidence" - hypothetical questions - mutual consent provisions of Deed of Gift - nationality rules legitimate. v Tab!e of Conten!s 6.3 ACAP 00/8: Oracle Racing (30 January 2001) 99 Entity not a yacht club - only a yacht club can challenge - Panel has no jurisdiction to determine questions submitted by a body not a yacht club. 6.4 ACAP 011/: Société Nautique de Genève (30 March 2001) 103 Breach of Article 16.5 by SNG - modification to ACC yacht without prior approval ofTechnical Director - altered yacht was not a "new" ACC yacht - fiue imposed 6.5 ACAP 01/2: Seattle Yacht Club 109 Eligibility of designer - employed by another syndicate for an wrrelated event - whether breach of Articles 11.5 and 15 .3(c) - confidentiality undel1aking required. 6.5.1 Decision (7 June 2001) 109 6.5.2 "Deed of Confidentiality and Undertaking" (16 July2001) 112 6.6 ACAP 01/3: Golden Gate Yacht Club / Oracle Racing (12 July2001) 117 Purchase of generic test data from Wolfson Unit - no breach of nationality or independent design rules - ruling limited to specific facts. 6.7 ACAP 01/4: Golden Gate Yacht Club / Oracle Racing 121 Design and performance information of "old" ACC yachts - whether performance information is "other design information" - pU1'chase infringes rule requiring separate and independent designers. 6.7.1 Decision "Ad Interim" on Design Information (19 September 2001) 121 6.7.2 Final Decision on PerfOl1l1anCe Information (21 October 2001) 129 6.8 ACAP 01/5: Société Nautique de Genève / Alinghi (5 September 2001) 135 Whether yacht and appendages must arrive in New Zealand at the same time - definition of "designed" and "built" - simultaneous arrivaI not required - appendages can be made in country of Match before or after the yacht's arrivai - entitled to construct new appendages in New Zealand after yacht's arrival. 6.9 ACAP 01/ 6: Seattle Yacht Club / One World (7 August 2001) 141 Approval of a "Deed of Confidentiality and Undertaking". VI Table al Contents 6.10 ACAP 0l/7: Yacht Club Punta Ala 1 Prada Challenge (6 December 2001) 143 Racing between syndicates - meaning of "an Official Race" - photographing yachts in non-official races. 6.11 ACAP 01/8: Seattle Yacht Club 1 One World (16 August 2002) 151 Engagement of designers - possession of design and perfomlance information from TNZ - nature of such information and whether it was used - penalty deduction of one point. 6.12 ACAP 02/1: Société Nautique de Genève 1 Alinghi (14 March 2002) 165 Use of centerboards and sliding keels - apparent conflict between Deed of Gift and ACC Rules - Rules apply as adopted by mutual consent. 6.13 ACAP 02/2: Yacht Club Punta Ala & Royal New Zealand Yacht Squadron (24 April 2002) 171 Nationality requirements for designers - whether two designers comply - principal place of residence - work visa not required- requirements satisfied. 6.14 ACAP 02/3: Golden Gate Yacht Club 1 Oracle Racing (20 September 2002) 179 Meaning of "fabricated and assembled" in Article 11.8(b) - hull, deck and appendages need not be assembled as a complete yacht in country of challenger. 6.15 ACAP 02/4: Royal Ocean Racing Club 1 GBR Challenge (20 September 2002) 183 Principal place of residence - interpretation of requirement to maintain residence in the Match Conditions - deemed to have had a principal place of residence in the UK. 6.16 ACAP 02/5: Seattle Yacht Club 1 One World (20 September 2002) 191 Designer of a withdrawn challenger - ineligible to be engaged by another challenger as a crew member. 6.17 ACAP 02/6: Golden Gate Yacht Club 1 Oracle Racing (20 September 2002) 195 Challenger cOllllnenced proceedings in High Court alleging breach of an agreement - breaeh of undertaking not to sue - proceedings withdrawn - no obligatory ineiigibility - penalty a fine. va Table of Contents 6.18 ACAP 02/ 7: Seattle Yacht Club / One World v. Royal New Zealand Yacht Squadron / Team New Zealand (22 August 2002) 203 Allegation that RNZYS / TNZ acquired design information the property of SYC / OWC - application withdrawn and dismissed. 6.19 ACAP 02/8: New York Yacht Club / Team Dennis Connor 205 Engagement of sailing coach - wrongly declared as designer for another challenger - no breach of A..t1icle 11.5. 6.19.1 Decision (15 October 2002) 205 6.19.2 Reasons for Decision (2 1 October 2002) 206 6.20 ACAP 02/9: Société Nautique de Genève / Alinghi (15 October 2002) 211 Application for leave to commence proceedings - application to withdraw granted. 6.21 ACAP 02/10: Yacht Club Punta Ala / Prada Challenge (27 November 2002) 213 Multiple nationality designer's engagement terminated - challenger required to maintain nationality eligibili ty - must maintain a principal place of residence for period speeified in Protoco!. 6.22 ACA P 02/ 11: Yacht Club Punta Ala / Prada Challenge & New York Yacht Club / Team Dennis Connor 221 ACAP 02/12: Seattle Yacht Club / One World Designer employed by SYC/OWC had in his possession design information the property of TNZ - other allegations of breaches dismissed - penalty imposed the 10ss of one point in each of Louis Vuitton semi-finals and finals and the America's Cup Match. 6.22.1 Decision (9 December 2002) 221 6.22.2 Clarification of the Decision (9 December 2002) 224 6.22.3 Reasons for Decision (21 December 2002) 226 7. The Protocol Governing the XXXII America's Cup (2 Mareh 2003) 233 8. Keyword Index 261 Vlll Table of Abbreviations (Yacht Clubs and Syndicates) GGYC Golden Gate Yacht Club, United States Syndicale: Oracle BMW Racing; GSYS Gamla Stans Yacht Siillskap, Sweden Syndicale: Victory Challenge; NYYC New York Yacht Club, United States Syndicale: Team Dennis Canner; RNZYS Royal New Zealand Yacht Squadron, New Zealand Syndicale: Team New Zealand; RORC Royal Ocean Racing Club, England Syndicale: GBR Challenge RYCCS Reale Yacht Club Canoltieri Savoia, Italy Syndicale: Mascalzone Latina Challenge; SNG Société Nautique Genève, Switzerland Syndicale: Alinghi Swiss Challenge; SYC Seattle Yacht Club, United States Syndicale: Oneworld Chall cnge; UNCL Union Nationale pour la Course au Large, France Syndicale: Le Défi Areva; YCPA Yacht Club Punta Ala, Italy Syndicale: The Prada Chall enge. ,1,1 1 1. Introduction 1 THE BOOK La Coupe est morte, vive la Coupe. The America's Cup XXXI ended on 2 March 2003 . The America 's Cup XXXJl immediately started with a new challenge being presented by the San Francisco Golden Gate Yacht Club to the new defender, Société Nautique de Genève. Even tbough each Cup is govemed by its own rul es, the members of the Ameriea's Cup XXXI Arbitration Panel thought that their experiences might be helpful to future participants.
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