# ADM vs. GGYC settlement



## WGEwald (Jun 2, 2014)

> July 23, 2014 -- African Diaspora Maritime Corporation ("ADM") and Golden Gate Yacht Club ("GGYC") hereby jointly announce that ADM and GGYC have mutually agreed to settle the action titled African Diaspora Maritime Corporation v. Golden Gate Yacht Club, Index No. 653419/2011, filed in the Supreme Court of the State Court of New York, County of New York. In its complaint, ADM alleged (among other things) that GGYC failed to consider in good faith ADM's application to compete in a Defender Series for the 34th America's Cup ("AC34"). GGYC denied ADM's allegations. The parties have now settled their dispute.
> 
> ADM is fully committed to continuing its efforts to participate in future America's Cup races. GGYC, which will again defend the Cup in the 35th America's Cup, is fully supportive of ADM's stated mission, which is: (a) to participate in local, national, and international competitive sailing events and maritime activities, including, but not limited to the America's Cup; (b) to train young African-Americans as competitive race sailors; (c) to teach the math and science behind hi-tech sailing as well as the role of African-Americans in maritime history; and (d) to serve as a role model by raising awareness of sailing not only in the African-American community but also in America generally.


Settled! | Latest News - African Diaspora Maritime


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## WGEwald (Jun 2, 2014)

Welcome to World Regattas - Sailing and Regatta Event Schedules and Information


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## SVAuspicious (Oct 31, 2006)

Maybe I don't understand something. Aren't America's Cup participants supposed to represent countries?


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## WGEwald (Jun 2, 2014)

SVAuspicious said:


> Maybe I don't understand something. Aren't America's Cup participants supposed to represent countries?


The participants are either challengers or the defender.

Any yacht club that meets the requirements specified in the Deed of Gift has the right to challenge the yacht club that holds the Cup. If the challenging club wins the match, it gains stewardship of the cup.

AmericaOne - America's Cup Deed of Gift


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## WGEwald (Jun 2, 2014)

Found this on SA.



> Explaining the Challenger of Record Concept
> 
> Published on July 30, 2014 by shoplifter
> 
> ...


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## SVAuspicious (Oct 31, 2006)

WGEwald said:


> The participants are either challengers or the defender.
> 
> Any yacht club that meets the requirements specified in the Deed of Gift has the right to challenge the yacht club that holds the Cup. If the challenging club wins the match, it gains stewardship of the cup.


I fully understand the workings of the America's Cup (at least as much as anyone does). As near as I can tell ADM is a US-based organization. Based on my understanding of the Deed of Gift ADM is not eligible to challenge the Cup until the Cup is again held by a non-US defender.

They have no more standing than the NYYC or AYC against GGYC.


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## WGEwald (Jun 2, 2014)

SVAuspicious said:


> I fully understand the workings of the America's Cup (at least as much as anyone does). As near as I can tell ADM is a US-based organization. Based on my understanding of the Deed of Gift ADM is not eligible to challenge the Cup until the Cup is again held by a non-US defender.
> 
> They have no more standing than the NYYC or AYC against GGYC.


_As far as I know_, ADM's eligibility on the basis of the issue you raise did not come up in any of the court hearings. Surely Ellison's lawyers would have pounced on that if it were a legitimate issue?
Copies of at least some of the court documents are at African Diaspora Maritime, and all can be retrieved from the PACER system if you are familiar with it. And if you can stand it, Sailing Anarchy has forum threads on the case extending back years.


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## SVAuspicious (Oct 31, 2006)

WGEwald said:


> _As far as I know_, ADM's eligibility on the basis of the issue you raise did not come up in any of the court hearings. Surely Ellison's lawyers would have pounced on that if it were a legitimate issue?
> Copies of at least some of the court documents are at African Diaspora Maritime, and all can be retrieved from the PACER system if you are familiar with it. And if you can stand it, Sailing Anarchy has forum threads on the case extending back years.


The documents linked from ADM are self-serving. PACER does not make all material available. Although more complete, LexisNexis similarly doesn't have all the discussions in chambers, full depositions, or negotiations.

I do see that ADM was challenging Oracle to be the defender in the next AC. Given recent cost of mounting a challenge much less a defense their objection to a $325k deposit seems to make their statement that they have adequate financial resources to mount a defense with a reasonable chance of winning somewhat specious.

It looks to me like ADM played the race card with no expectation of winning simply for publicity. My own take on the settlement (with no insight to particulars) is that GGYC agreed not to make fun of ADM in exchange for not dragging the issue through the courts.

Surely someone at SA has made the same observation.

Some group that given their resources should be focused on community sailing wants to defend the Cup that someone else won without enough money to even start building a boat? Absurd.

They would have no better chance than a bunch of SailNetters deciding to launch a challenge.


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## WGEwald (Jun 2, 2014)

Last years news today!

RALEIGH: Raleigh group's hopes of joining America's Cup race still alive | More Sports | NewsObserver.com

RALEIGH: Raleigh group's lawsuit aimed at America's Cup bid | Wake County | NewsObserver.com


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## WGEwald (Jun 2, 2014)

> McDermott got involved with a different sort of rights battle when it took the case of African Diaspora Maritime Corp. and ultimately helped to win the reversal of a New York court's decision to dismiss a breach of contract claim against Golden Gate Yacht Club, the current trustee of the America's Cup.
> 
> ADM, which helps train young African-Americans as competitive racing sailors, alleged the club had unfairly rejected the group's application to compete as a defender candidate against Oracle Team USA in the lead-up to the 34th America's Cup in 2013.
> ADM said the club had falsely asserted that the group had lied about recruiting a leading yacht designer to design its ship and that it didn't have the resources to compete in the race, even though teams normally seek funding after their applications are accepted.
> ...


Pro Bono Firm Of 2014: McDermott Will & Emery - Law360


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