By HELEN TUNNAH
Team Alinghi, backed by one of the world's richest men, plan court action to recover Auckland City Council rates the syndicate say they have been overcharged.
The Swiss team have asked the America's Cup Arbitration Panel for leave to file proceedings in the district court against America's Cup Village Ltd, a subsidiary of Infrastructure Auckland.
The syndicate say they have been overcharged $24,847.80 in rates.
The syndicate are backed by pharmaceutical billionaire Ernesto Bertarelli, who has pumped about $US55 million into his America's Cup campaign.
He and his family were ranked 31 on Forbes magazine's list of the world's top 50 billionaires.
The arbitration panel has asked other syndicates for their view on whether Alinghi should be allowed to take court action.
Under the rules governing the cup, syndicates are barred from taking legal action against other syndicates, but Alinghi are concerned the rules might also apply to outside contractors like ACVL, which manages the village's marina.
In a letter to the panel, Alinghi said negotiations to resolve the dispute had failed.
"Subject to the panel's directions, Alinghi proposes to commence proceedings in the district court at Auckland to recover this sum by way of summary judgment," the letter said.
The taking of legal action has been a sore point among the challengers.
Prada launched a High Court lawsuit against Oracle BMW Racing after a dispute between the syndicates over a barge.
When told the action might mean that Prada had broken the regatta rules and could be declared ineligible to challenge, the action was dropped.
Oracle complained to the arbitration panel, which fined Prada $US10,000 plus costs for breaking cup rules.
ACVL declined to comment when asked about the dispute.
Alinghi rules adviser Hamish Ross said the row centred on rates paid the year before last. Attempts to settle the issue had failed.
He said the sum in the scheme of things might seem minor, but all the teams at the viaduct had contracts with ACVL.
nzherald.co.nz/americascup
Racing schedule, results and standings
Alinghi plan to sue over rates
AdvertisementAdvertise with NZME.