Thomson Reuters News & Insight
Featured Content from WESTLAW
Beginning in June, Thomson Reuters News & Insight content will be available exclusively on WestlawNext®, as part of its Practitioner Insights offering. On June 21, the Thomson Reuters News & Insight website, iPhone® app and newsletters will be discontinued. See Frequently Asked Questions to learn more.

Legal

  •  
  •  

Teams line up for Fleet Racing at the America's Cup World Series. REUTERS Jessica Rinaldi

Case against Golden Gate Yacht Club over America's Cup sinks

1/22/2013 COMMENTS (0)

By Karen Freifeld

NEW YORK, Jan 22 (Reuters) - A New York judge dismissed a lawsuit against the Golden Gate Yacht Club brought by an African-American sailing group that sought to compete for a chance to represent the United States at this year's America's Cup.

Oracle Racing, which is backed by billionaire Larry Ellison, won the cup on behalf of San Francisco's Golden Gate Yacht Club in 2010 and is the defender of the cup. Other candidates are allowed to apply to become defender, and Golden Gate must consider applications.

African Diaspora Maritime Corporation applied to compete against Oracle and was rejected, and in 2011 it filed a lawsuit against Golden Gate in New York State Supreme Court.

African Diaspora claimed the yacht club breached its duty to review its application in good faith. It sued for $1 million in damages and sought an order directing the yacht club to accept its application.

Golden Gate said in court papers it gave African Diaspora Maritime an opportunity to show it had the necessary resources to put together a competitive team but failed to do so.

Supreme Court Justice Barbara Kapnick sided with the yacht club. In a Jan. 18 decision tossing the lawsuit she said that African Diaspora "has never competed in the America's Cup, nor has it indicated that it has ever competed in any regatta or that the purported members of its 'syndicate' have ever even been on a boat together."

African Diaspora Maritime Executive Director Charles Kithcart said in an interview he was disappointed by the judge's ruling.

"The judge is saying, 'I agree, I don't think they can beat Oracle.' Oracle is not unbeatable," Kithcart said. "Now they have no competition."

"Golden Gate Yacht Club is gratified by the court's decision and looks forward to concentrating on sailing," said attorney Philip Bowman of Boies, Schiller & Flexner, who represented the club.

Oracle will defend the 34th America's Cup for the club in September in San Francisco Bay.

The case is African Diaspora Maritime Corporation v. Golden Gate Yacht Club, New York State Supreme Court, New York County, No. 653419/2011.

For Golden Gate Yacht Club: Philip Bowman of Boies, Schiller & Flexner LLP, who represented the club.

For ADM: Banks Brown for McDermott WIll & Emery.

Follow us on Twitter @ReutersLegal | Like us on Facebook  


Register or log in to comment.

© 2013 Thomson Reuters