The history of YCPA/Prada and NYYC/TDC’s impending case against SYC/OWC is an entangled web of allegations and counter-claims that originates at the end of America’s Cup XXX.

The following time line attempts to put in chronology some of the events of the past two and a half years. This isn’t intended as a definitive document, but rather an outline of some of the most important events to ever circulate around the America’s Cup.

March 2, 2000

Team New Zealand defeats Italy’s Prada Challenge from the Yacht Club Punta Ala and becomes the first team outside of the U.S. to successfully defend the America’s Cup, winning their 10th straight race in the Cup Match dating back to 1995. Skipper Russell Coutts, who had won the first nine races, steps aside and gives understudy Dean Barker the spotlight for New Zealand’s shining moment.

As New Zealand crosses the finish line to a cacophony of triumph, Yacht Club Punta Ala Commodore Bruno Calandriello submits to Royal New Zealand Yacht Squadron Commodore Peter Kingston the “hip-pocket” challenge that set in motion planning for America’s Cup XXXI.

March 31, 2000

Sean St. Leger Reeves’s contract with Team New Zealand expires. He had been an employee of Team New Zealand since 1994 and generally served as a rules advisor.

By mid-April he is approached by Gary Wright, representing Craig O. McCaw, enquiring whether he’d be willing to assist in the formation of a new syndicate based in Seattle, Wash.

May 19, 2000

Russell Coutts and Brad Butterworth, two of the primary cogs in Team New Zealand’s back-to-back Cup victories, resign. Coutts was not in New Zealand for the announcement, but Butterworth faced a media conference and read a prepared statement. He said it was the hardest decision the pair had had to make.

May 22, 2000

Coutts and Butterworth announce they have joined the nascent Alinghi Challenge, headed by Swiss pharmaceuticals billionaire Ernesto Bertarelli. Later they would be joined by former Team New Zealand mates Simon Daubney (headsail trimmer), Warwick Fleury (mainsail trimmer), Murray Jones (tactician/strategist) and Dean Phipps (bowman).

May 30, 2000

Designer Laurie Davidson announces his departure from Team New Zealand. Davidson played a foremost role in creating Team New Zealand’s four boats over seven years, drawing the lines plans.

June 20, 2000

The OneWorld Challenge becomes official, filed under the burgee of the Seattle Yacht Club. The challenge is headed by telecommunications scion Craig O. McCaw. The Forbes 500 list of the world’s most wealthy individuals issued in March 2000 placed McCaw No. 56 with an estimated worth of US$6 billion. The team’s announced budget is US$75 million.

Gary Wright, a long-time employee of McCaw’s, is introduced as the team’s Chief Executive Officer. Veteran Cup skipper Peter Gilmour is named Sailing Director and Davidson the head of the design team. Reeves played a role in setting up interviews with potential team members. As many as 11 other former Team New Zealand crew members and technical personnel would follow.
 
 
 
 
March 2001

OneWorld falls on financial difficulties. It asks team members to take pay cuts to help pull through. Many agree. Reeves declines.

May 21, 2001

OneWorld and Reeves execute a Separation and General Release Agreement negotiated at US$600,000, according to OneWorld Executive Director Bob Ratliffe.

August 2001

OneWorld initiates legal proceedings against Reeves, alleging breaches of his confidentiality agreement.

Paul G. Allen, a co-founder of Microsoft and close friend of McCaw’s, agrees to join the team as a financial backer for US$10 million. The funding is from Allen’s investment company, Vulcan Northwest, in the name of its San Francisco-based cable channel, TechTV.

December 20, 2001

OneWorld Challenge files an application with the America’s Cup Arbitration Panel seeking interpretive rulings on the application of Articles 11.5, 11.6, 13.3(a) and 15.3(c) and directions under Article 22.8 of the Protocol. The case is titled ACAP 01/08.
 
 
 
 
February 2002

Reeves files counter-suit against OneWorld in U.S. courts alleging an extensive list of Protocol violations.

March 2002

OneWorld Challenge launches its two new America’s Cup Class sloops, USA-65 and USA-67, within two weeks of each other.

August 16, 2002

The America’s Cup Arbitration Panel issues its ruling in the matter of ACAP 01/08, an application by Seattle Yacht Club/OneWorld Challenge seeking interpretive rulings on the application of Articles 11.5, 11.6, 13.3(a) and 15.3(c) and directions under Article 22.8 of the Protocol.

The Panel found that OneWorld committed “breaches of Article 15.3(c), by reason of its possession, as previously set out, of the measurement certificates of NZL-57 and NZL-60, the carbon-fibre certificates for those yachts, and the sail design information in relation to Prada’s America’s Cup XXX yacht; also, by reason of its possession and use, to the extent previously indicated, of the design drawings of America True, the tank testing photographs for the Team New Zealand America’s Cup XXX campaign and the retention of cockpit design material in respect of NZL-60.”

Based on these breaches, and the fact that OneWorld “brought before the panel the facts that have resulted in the findings that it was in breach,” the Panel imposed a one point penalty, to be deducted after the completion of the Louis Vuitton Cup round robins. It also ordered OneWorld to pay US$13,500 in costs.

In accordance with Article 6.4, the Panel ruled that the breaches dealt with in the judgement shall not render OneWorld ineligible to become the Challenger under the Deed of Gift for the Match.

September 26, 2002

The United States Federal District Court in Seattle rules in favor of OneWorld in its case against Reeves. The Court ruled that Reeves had wrongfully breached his obligations to OneWorld by retaining and disclosing OneWorld’s confidential information.
 

September 30, 2002

According to Condition 3.4 of the Louis Vuitton Cup Notice of Race and Conditions, the time limit for lodging protests alleging non-compliance with

(a) The America’s Cup Deed of Gift,

(b) The Interpretive Resolutions,

(c) The Protocol,

(d) The decisions of the America’s Cup Arbitration Panel,

(e) The Class Rule, with regard to matters of construction or design, and

(f) Any of the provisions of these Conditions that are applicable and in effect from the time of adoption

expired at 1500. It is the day before the first day of the Louis Vuitton Cup Challenger Selection Series.

Protests may be lodged at a later date if the Jury is satisfied that (i) the non-compliance first occurred after that time, or (ii) the protestor could not reasonably have been aware of the circumstances justifying the protest any earlier.
 
 
 
October 1, 2002

The Louis Vuitton Cup Challenger Selection Series for America’s Cup XXXI begins.

October 23, 2002

Round Robin 1 of the Louis Vuitton Cup concludes. OneWorld leads the standings with 8 points on an 8-0 record.

November 3, 2002

Round Robin 2 of the Louis Vuitton Cup concludes. OneWorld finished the two rounds in second place with 13 points on a 13-3 record. After the one point penalty imposed by the America’s Cup Arbitration Panel is applied, OneWorld totals 12 points. OneWorld is tied with Oracle BMW Racing for second overall, but loses the tie-breaker and falls to third.

November 18, 2002

The Louis Vuitton Cup Quarter Finals end. OneWorld loses to Oracle BMW Racing 4-0, meaning it will race in the Quarter Finals Repechage Round.

November 19, 2002

OneWorld, the highest remaining seed in the competition at No. 3 (based on the round robin results), is granted the right to choose its opponent for the Quarter Finals Repechage Round. It chooses Team Dennis Conner.

November 23, 2002

The first scheduled day of the Quarter Finals Repechage Round is postponed due to light winds.

November 24, 2002

The second scheduled day of the Quarter Finals Repechage Round is postponed due to too much wind.

The Challenger of Record, Yacht Club Punta Ala, and its representative syndicate Prada Challenge 2003 (YCPA/Prada) and the New York Yacht Club and its syndicate Team Dennis Conner (NYYC/TDC) submit application ACAP 02/11 with the America’s Cup Arbitration Panel seeking resolution of a dispute with Seattle Yacht Club represented by OneWorld Challenge (SYC/OWC) regarding multiple contraventions of Article 15.3(c) of the Protocol.

The Application is based on new information evidencing extensive additional violations of the Protocol by SYC/OWC. In general terms, the additional violations comprise:

• Possession of other syndicates’ design and performance information in violation of provisions of Articles 13 and 15 of the Protocol beyond that which was previously disclosed.

• Use of other syndicates’ design and performance information in violation of provisions of Articles 13 and 15 of the Protocol not disclosed to the Panel.

• The very fact of non-disclosure by SYC/OWC to the Panel, in further violation of the spirit and intent of the Protocol, the Rules of Racing (specifically Fundamental Rule 2), and in contempt of the dispute resolution mechanism agreed to by challengers.

The joint applicants seek from the Panel a ruling that SYC/OWC is not eligible to be a challenger for the XXXI America’s Cup and therefore should be disqualified for both the Louis Vuitton Cup and for the Match itself.

November 25, 2002

The third scheduled day of the Quarter Finals Repechage Round is again postponed, due to lack of wind.

The New York Yacht Club/Team Dennis Conner files a protest with the International Jury alleging a breach of Fundamental Rule 2, Fair Sailing. The rule reads in part: A boat and her owner shall compete in compliance with recognized principles of sportsmanship and fair play. NYYC/TDC seek to have SYC/OWC disqualified from the Louis Vuitton Cup.

November 26, 2002

OneWorld wins its first Quarter Finals Repechage race against Team Dennis Conner by 1:16.

The International Jury rules that it will hear the protest from NYYC/TDC against SYC/OWC. The jury rules that the protest is valid and that it has jurisdiction to rule on the matter. OneWorld asks that the hearing be delayed until after the Quarter Finals Repechage Round as many of its witnesses are team members involved in the racing.

November 27, 2002

OneWorld wins its second Quarter Finals Repechage race against Team Dennis Conner by 1:50.

The International Jury outlines the procedures for proceeding with the protest. The jury also files an application with the America’s Cup Arbitration Panel that “seeks leave to apply to the Arbitration Panel to be accepted as a party and to be heard in relation to ACAP 02/11.”

November 28, 2002

OneWorld wins its third Quarter Finals Repechage race against Team Dennis Conner by 1:02.

The America’s Cup Arbitration Panel issues directions to the YCPA/Prada and NYYC/TDC relating to their joint application. The directions are largely procedural.

The Panel also announces that it will travel to Auckland to hear case ACAP 02/11 over the weekend of December 7-8.

As a result of the Panel’s decision to hear Case ACAP 02/11 earlier than first anticipated, the International Jury, with the consent of NYYC/TDC and SYC/OWC, stays the hearing of the protest. The jury will resume the protest hearing at 18hoo on December 9. At the resumed hearing, the jury will limit the taking of evidence to those matters that NYYC/TDC alleges broke Racing Rule 2 but not the Protocol.

In the event that the jury finds a breach of Rule 2 and is considering a penalty, it will take into account any penalties imposed by the Arbitration Panel.

November 29, 2002

OneWorld wins its fourth Quarter Finals Repechage race against Team Dennis Conner by 1:00 and the match by 4-0, advancing to the Louis Vuitton Cup Semi Finals.

YCPA/Prada and NYYC/TDC submit a joint request to the International Jury asking it to determine that the requirements of Condition 3.4, Lodging of Protests (see September 30, above) had been met in relation to their joint Application to the America’s Cup Arbitration Panel, ACAP 02/11.

December 1, 2002

The America’s Cup Arbitration Panel Registrar issues further directions and a minute of the America’s Cup Arbitration Panel. The further directions change a conference call to a meeting. The minute orders YCPA/Prada and NYYC/TDC each to deposit a sum of US$20,000 in the bank account of the America’s Cup Arbitration Panel for security for costs of the hearing commencing December 7, 2002.

December 2, 2002

The International Jury issues Notice #056/Decision #09 answering the joint request submitted by YCPA/Prada and NYYC/TDC on November 29. They sought clarification that their Application to the Arbitration Panel met the requirements of Condition 3.4, Lodging Protests.

“The Jury determines that Stars & Stripes met the requirements of Condition 3.4 and therefore the Application is valid, notwithstanding Prada’s failure to do so,” said the decision, signed by International Jury Chairman Bryan Willis.

December 3, 2002

OneWorld responds to the application filed jointly by YC Punta Ala/Prada Challenge and New York YC/Team Dennis Conner. OWC flatly denies the allegations put forth by the applicants, saying the “evidence does not establish the alleged breaches.”

Source: Sean McNeill