Simpson Thacher represents Societe Nautique de Geneve ("SNG"), the America's Cup holder, in a high-profile dispute with the Golden Gate Yacht Club ("GGYC").
The America’s Cup is the most prestigious sailing event in the world. It is also one of the oldest sporting events in the world and it ranks third in popularity, behind only the Olympics and the World Cup. It is a challenge event governed by a Deed of Gift that dates back to the 1890s. The Deed of Gift provides rules on, inter alia, who can challenge for the cup and how the challenge must be made. The Deed of Gift requires that a yacht club seeking to race for the America's Cup must be one "having for its annual regatta an ocean water course on the sea."
Following its victory at the 32nd America's Cup, SNG accepted a challenge from a Spanish yacht club, Club Nautico Espanol de Vela ("CNEV"). Shortly thereafter, GGYC filed an action in New York state court alleging that CNEV was not a qualified under the Deed of Gift to challenge for the America's Cup because it had not held an annual regatta prior to lodging its challenge to race for the Cup. SNG argued that CNEV was qualified to challenge because it had planned its annual regatta and would have held two annual regattas by the time the 33rd America's Cup took place. Last November, prior to Simpson Thacher's involvement in the case, the New York trial court agreed with GGYC and disqualified CNEV as the Challenger of Record. It also declared that GGYC was the valid Challenger of Record.
The appeal was argued on June 5, 2008. In a landmark ruling on July 29, 2008, the New York Appellate Division reversed the trial court, holding that CNEV is the correct Challenger of Record for the 33rd America's Cup and that the race take place not less than 10 months from today. The Appellate Division held that the Deed of Gift has no provision requiring the annual regatta to have been held prior to the lodging of a challenge and that CNEV was a properly constituted yacht club. The Appellate Division's ruling therefore returns the 33rd America's Cup status to what it was before GGYC commenced its litigation a year ago.
The Simpson Thacher team includes Barry Ostrager, Jon Youngwood, George Wang, Laura Murphy, Ihsan Dogramaci, Thomas Welling, Donald Conklin, paralegal Stephanie Crosskey, and summer associate Chris Lee.
See below for copy of decision.