33rd America's Cup Arbitration Panel Make First Ruling: Club Nautico Español de Vela Are Legitimate

In the most recent of a flurry of activities over the last few days, the 33rd America's Cup Event Authority have disclosed that the recently nominated Arbitration Panel have reached their first decision, that Club Nautico Español de Vela (CNEV) are a legitimate Challenger of Record.

Full documentation has yet to be released which may or may not address a number is issues recently raised by GGYC in their action against SNG in the New York Supreme Court, a legal dispute still in its early days. The statement released by ACM today indicates that documentation will be available from ACM's website on Monday September 10th.

The full statement may be read upon ACM's website (Here), and is reproduced below:

Arbitration Panel confirms validity of CNEV

07-09-2007

This afternoon, the Arbitration Panel reached a decision on the ACAP 33/01 case, in the matter of the Protocol governing the 33rd America’s Cup and in the matter of an application filed by SNG on July 20, 2007 in respect of the validity of the challenge of Club Nautico Español de Vela (“CNEV”) for the 33rd America’s Cup.

In compliance with directions from the Arbitration Panel, the full document will be made available from this website Monday September 10, but it the meantime this is the summary of the decision:

“[162] The decision of the Panel is the following:

- The Panel (i) has the competence to rule on its own jurisdiction and (ii) also has jurisdiction to

rule on the present matter;

- The challenge for the 33rd America’s Cup made by CNEV on July 3, 2007 (i) is a valid challenge

entitling CNEV to challenge for the America’s Cup as Challenger of Record and (ii) SNG is obligated to

accept (as it was the first valid challenge it received);

- The Protocol signed by SNG and CNEV on July 3, 2007 complies with the Deed of Gift; and

- Although this does not affect the compliance of the existing Protocol with the Deed of Gift, the

Panel believes that SNG and CNEV should consider amending the Protocol in respect of some of its

provisions as stated in point points [155] and [156].”
--Ends--

The statement appearing on ACM's website has been subsequently updated to read thus:

Arbitration Panel confirms CNEV as Challenger of Record

08-09-2007

Yesterday evening, the Arbitration Panel reached a decision on the ACAP 33/01 case, in the matter of the validity of the challenge of Club Náutico Español de Vela (“CNEV”) for the 33rd America’s Cup.

"This is a very important milestone as the Arbitration Panel confirming CNEV as the Challenger of Record and that the Protocol complies with the Deed of Gift, gives us further confidence to continue our plans and work on organising the 33rd America’s Cup campaign both in 2008 and 2009.” said Michel Hodara, on behalf of America’s Cup Management.

Summary of the decision of the Panel is as follows:

“- The Panel (i) has the competence to rule on its own jurisdiction and (ii) also has jurisdiction to rule

on the present matter;

- The challenge for the 33rd America’s Cup made by CNEV on July 3, 2007 (i) is a valid challenge

entitling CNEV to challenge for the America’s Cup as Challenger of Record and (ii) SNG is obligated to

accept (as it was the first valid challenge it received);

- The Protocol signed by SNG and CNEV on July 3, 2007 complies with the Deed of Gift; and

- Although this does not affect the compliance of the existing Protocol with the Deed of Gift, the Panel

believes that SNG and CNEV should consider amending the Protocol in respect of some of its

provisions as stated in points [155] and [156].”

To clarify this final point, this recommends that some changes are made to the way the Arbitration Panel is administered. The full Panel Decision will be made available from the America’s Cup website (www.americascup.com) on Monday 10 September.

Additionally, ACM is pleased to report that a Competitors Commission meeting took place on Friday morning with all the entered competitors and was the start of the planning process for the new class rule and competition regulations, which will include a schedule and format for the 33rd America’s Cup. This meeting also gave the Competitors Commission the opportunity to discuss further elements of the Protocol and there are further meetings planned in the coming weeks.
--Ends--