A Charitable Trust and a 159 Year Old Trophy
One-hundred and thirty-seven ounces of solid silver, standing over two feet tall, this “One Hundred Guinea Cup” created under the authorization of Queen Victoria in 1848 is physically what is at stake at every America’s Cup regatta. However, it is the dignity, honor, and national pride that attach to the victor of this cherished objet d’art that have been the desire of the yacht racing community since its creation. Unfortunately, this desire often turns to envy and has driven some to abandon concepts of sportsmanship and operate by “greed, commercialism and zealotry.” When these principles clash “the outcome of the case [will be] dictated by elemental legal principles.”
Indeed, the thirty-third challenge for the Cup found more action in New York courtrooms than on the water. Wealthy contributors, state-of-the-art ships and large egos created a predicament that had to be sorted out before the regatta could get underway. This battle manifested itself in front of the New York Court of Appeals in the case Golden Gate Yacht Club v. Société Nautique De Genève.
The issue surrounding this case dealt with the interpretation of the Deed of Gift for the America’s Cup (“Deed of Gift”), which granted the America’s Cup as a “perpetual Challenge Cup for friendly competition.” Section II of this article pertains to the history of the America’s Cup and the document that established it, the Deed of Gift. Section III outlines some of the legal instrumentalities that are applicable to the case. Section IV discusses the court’s application of these instrumentalities to the case at bar. Section V analyzes the court’s logic in its application of the legal doctrines or lack thereof. Finally, section VI focuses upon the consequences that the court’s decision will have on the America’s Cup and similar legal documents in the future.