OneWorld sails into new legal challenge

OneWorld Challenge from Seattle has been accused of breaking the rules of the America's Cup in 22 ways when it designed its two boats for the series here.

The New York Yacht Club, which is represented here by Team Dennis Conner, and the Yacht Club of Punta Ala, represented by Prada, have lodged protests with the arbitration panel of the America's Cup alleging breaches of the protocol governing the event, notably through the alleged illegal use of the cup defender Team New Zealand's copyright designs and Prada's detailed sail programme in the 2000 America's Cup.

OneWorld had, in May, admitted possession of design data that it had obtained, but it had denied using the data. The arbitration panel penalised the syndicate one winning point in the round robin that was held before the knockout rounds of the Louis Vuitton Cup challengers' series.

Much of the affidavits that form the evidence of the NYYC and the YCPA are from Sean Reeves, the former operations manager of OneWorld, who broke his confidentiality agreement with the syndicate and was ordered to pay it damages and legal fees of $1.6m.

OneWorld denounced his testimony; its executive director Bob Ratcliffe called it "somewhere between discouraging and disgusting". But Reeves' evidence has been supported by the respected Auckland sailmaker Michael Spanhake, who in a declaration made under penalty of perjury has pinpointed certain statements within the affidavits which he states are "true and correct based upon information and knowledge personally known to me".

Reeves, through his lawyers, has declined to provide any further assistance because he has been warned by OneWorld that any further disclosure of material it considers confidential will result in further damages and the seeking of a contempt order for breach of the court's protective order restraining him.

Reeves' lawyers state: "He is simply not prepared to expose himself and his family to the pressure, stress and worry that the instigation of any such proceedings would bring, irrespective of the merit of the allegations upon which any such proceedings are based."

Ratcliffe's reaction to the application to the arbitration panel was: "It's another chapter in the long, sordid history of unsportsmanlike conduct in the America's Cup. It's time it ended."

But yesterday Team Dennis Conner and Prada jointly lodged a further protest, this one with the international jury, alleging that OneWorld had breached International Sailing Rule 2, concerning "fair sailing and sportsmanlike conduct".

There was no racing in the quarter-finals repechage of the Louis Vuitton Cup for the third successive day yesterday after the wind failed to materialise.