Court Rules America’s Cup Is San Diego’s : Sailing: Final appeal goes against New Zealand. Next defense will begin in January of 1992.

SAN DIEGO —  The America’s Cup will return to San Diego, thanks to a decision Thursday by New York’s highest court, and the San Diego Yacht Club will play host to the next defense, beginning in January, 1992.

The New York Court of Appeals in Albany, N.Y., put an end to 2 1/2 years of legal wrangling between the SDYC and New Zealand’s Mercury Bay Boating Club by ruling that the 1988 defense of the Cup by the SDYC in a catamaran was legal. The 5-2 verdict upheld a September, 1989, decision by an appellate court.

“The ruling is final, and we accept it,” said Michael Fay, chairman of the New Zealand challenge.

America’s Cup XXVIII will be sailed off Point Loma under a revised set of rules, in boats larger than the 12-meter yachts used since World War II. The best-of-seven final is scheduled for May, 1992.

“This is a very auspicious occasion,” said Frank Radford, commodore of the SDYC. “We finally can say the legal battle is over. . . . We will pledge to the challengers and defenders that they will have a good event.”

Mercury Bay had accused the SDYC of violating the 139-year-old Deed of Gift, which generally outlines rules for the America’s Cup event, in a suit filed with the New York state courts, which are responsible for interpreting the deed.

Said Toby Morpom, Mercury Bay commodore: “We are disappointed, but also relieved it is all over. The Kiwis are not renowned for backing off when they suffer a hiccup to the system. In my opinion, the country at large will be bitterly disappointed if we don’t climb back on our feet and go again.”

Dennis Conner, skipper of Stars & Stripes--the controversial catamaran that defeated New Zealand’s 133-foot monohull, 2-0, in 1988--was preparing for today’s start of the Newport Beach-to-Ensenada race and was unavailable for comment.

In a statement, he said: “I am pleased that the San Diego Yacht Club and the Stars & Stripes team have been vindicated. As with all of the national and international teams awaiting America’s Cup 1992, I am happy to see the fate of the Cup come out of the courts and go back on the water, where it rightfully belongs.”

The September decision by the appellate division of the New York Supreme Court overturned a March, 1989, decision by Supreme Court Judge Carmen Ciparick that awarded the Cup to New Zealand. Ciparick said that San Diego had won unfairly by using a catamaran against the single-hulled New Zealand boat.

In Thursday’s decision, the Court of Appeal said: “We agree that the Stars and Stripes was an eligible vessel under the terms of the Deed of Gift, and that San Diego breached no fiduciary duty in racing a catamaran against Mercury Bay’s challenging yacht. . . .

“Nothing in the deed limits the design of the defending club’s vessel other than the length on waterline limits applicable to all competing vessels, nor are the competing vessels expressly limited to monohulls. . . .

“Moreover, there is no requirement that the defending vessel have the same number of hulls as the challenging vessel, or even that the competing vessels be substantially similar.”

As for New Zealand’s plea for fair play, the court said: “Any question as to sportsmanship and fairness, such as the propriety of races between monohull and multihull vessels, are questions which the trust instrument appropriately leaves to the expertise of persons actively involved in yacht racing; they are not questions suitable for judicial resolution.”

Radford and Tom Ehman, general manager of the America’s Cup Organizing Committee, appeared at a news conference at the SDYC--complete with cake, champagne and red, white and blue balloons--a few hours after the court’s decision.

“The world’s longest yacht race is finally over,” Ehman said. “Obviously, this is a day for which we’ve waited too long. . . . With today’s decision, and the earlier appellate court decision, a principle has been upheld. That is, the rules are the rules; if you don’t like them, change them, but don’t invent and apply new rules after the game is over.”

Radford said the SDYC is making plans to bring the Cup back to San Diego sometime next week. It has been in a New York bank vault for more than a year.

The dispute began July 17, 1987, when Fay issued a surprise challenge to Fred Frye, former SDYC commodore. When the SDYC said that there would be no response, Mercury Bay took its case to the New York Supreme Court, arbiter of Deed of Gift disagreements, to set the stage for the next 2 1/2 years.

Now, both sides are looking ahead.

“As far as I’m concerned, this is a starting point,” Fay said in a news conference in Auckland. “The goal remains the same, which is to win the America’s Cup.”

Said Ehman: “(One) good thing about the last three years is the publicity--the attention this dispute has brought to this event. More people know about the America’s Cup than ever before. That can only be good.”

There are about 10 potential America’s Cup defense syndicates and 14 current challengers--including Fay--from a record 11 nations.

Seven other potential challengers have said they are considering making the $25,000 challenge deposit by the May 26 deadline. A challenger’s meeting will be held in San Diego May 30, 31 and June 1.

The ACOC’s defense subcommittee hasn’t yet mapped out plans.

“I would assume it would be a similar time frame,” said Peter Isler, who will compete for the right to skipper the defense.

Ehman said he expected challengers to begin arriving in San Diego with their new, 75-foot yachts later this year, probably around Christmas. The International America’s Cup Class World Championship--Ehman called it a “dress rehearsal,” with challengers and defenders racing together--will be held in May, 1991.

The new class of boat was established at a meeting of representatives of over 20 yachting syndicates--both potential defenders and challengers--in January, 1989, in San Diego. The hope was that it would prevent maverick challenges such as Fay’s in the future.

CHRONOLOGY

A chronology of the events of New Zealand’s challenge for the America’s Cup.

Feb. 4, 1987--Dennis Conner wins America’s Cup from Australia, sailing for the San Diego Yacht Club. Instead of following the New York Yacht Club procedure of immediately announcing terms of the next defense, SDYC becomes involved in conflicts over control of the regatta, site for the event, fund-raising and other financial issues.

July 17, 1987--Mercury Bay Boating Club (MBBC) formally challenges SDYC to a match for the America’s Cup “in the manner set forth in the American’s Cup Deed of Gift.” Michael Fay delivers the challenge by hand to the SDYC. The challenge specifies racing in a 90-foot waterline monohull, to begin in June, 1988.

Aug. 31, 1987--After being told by the SDYC that there would be no response to its challenge, New Zealand asks the New York Supreme Court, arbitrator of Deed of Gift conflicts, to order the SDYC to acknowledge the challenge as valid.

Nov. 25, 1987--Judge Carmen Ciparick rules the MBBC challenge is valid and disallows San Diego’s request to amend the Deed of Gift. The court tells the SDYC that the choices are to sail a match for the Cup in accordance with the challenge and the terms of the Deed, to negotiate other terms by mutual consent or to forfeit the Cup.

Jan. 19, 1988--During a week of talks with MBBC in San Diego, SDYC announces it will defend with a catamaran.

May 5, 1988--Mercury Bay asks the Supreme Court in New York to order SDYC to abandon a multihull defense because it is contrary to the Deed of Gift.

July 25, 1988--Ciparick orders SDYC and MBBC to race first and protest later.

Sept. 7 and 9, 1988--SDYC’s catamaran sweeps the series, 2-0. Establishing early superiority in both races and sailing sporadically thereafter, Stars and Stripes beats New Zealand in a bizarre international encounter.

Nov. 30, 1988--MBBC asks the Court to disqualify SDYC’s 1988 catamaran defender on the grounds that it was not qualified in terms of the Deed of Gift and MBBC’s notice of challenge.

Jan. 9, 1989--Twenty-five international challengers meet in San Diego and reach agreement on a new America’s Cup class design inspired by the big boat challenge and by new-found challenger’s rights revealed by Mercury Bay’s challenge.

March 28, 1989--In the first disqualification in the Cup’s 138-year history, Ciparick rules that the San Diego Yacht Club flouted rules in the two-race sweep last September by sailing a catamaran while the New Zealanders used a traditional monohulled craft.

Sept. 19, 1989--The San Diego Yacht Club’s appeal to the appellate division of the New York Supreme Court reversed Ciparick’s decision by a 4-1 vote. Fay promises to appeal to the next level.

April 26, 1990--The issue is resolved when New York Court of Appeals votes, 5-2, to uphold the decision of Sept. 19. The ruling says “legal” supersedes “fairness” in the eye of the court.