Cup village firm aims to keelhaul ex-chief

By BERNARD ORSMAN

High-powered lawyers are gunning for Rob Sutherland, the former boss-turned-critic of commercial blunders at the America's Cup village.

The Herald has learned that the body in charge of the $85.7 million public spend-up at the village is preparing a lawsuit to recover the $320,000 it paid Mr Sutherland to stay quiet when he left in May last year.

And Lindsay Fergusson, a leading businessman whom Mr Sutherland has accused of putting together a sponsorship deal that was "commercial suicide," is considering suing Mr Sutherland.

Last night, Mr Fergusson said he was consulting a lawyer from Russell McVeagh. He would decide in due course what action to take.

America's Cup Village Ltd (ACVL), the public body which built the yachting facilities and managed the village, has been stung by comments from Mr Sutherland that the American Express sponsorship deal cost the ratepayers of Auckland $5 million.

Chairman Peter Kiely and board member John Hagen spent yesterday preparing a lawsuit against Mr Sutherland.

Mr Kiely would say only that the company was considering its legal position, but sources confirmed a lawsuit would shortly be served on Mr Sutherland.

A senior source within the company said it was untrue of Mr Sutherland to claim he resigned in protest at the American Express deal - "he was fired for a series of misdemeanours."

Mr Sutherland said he had received a letter from ACVL's lawyers asking to explain his actions.

"I don't know if I'm in breach of the confidentiality agreement.

"All I did was comment on whether I was fired because of some differences with Ray Smith (the American Express boss in Auckland)."

Meanwhile, Ian Collinson, the ACVL chief executive who succeeded Mr Sutherland, is leaving at the end of next week to take up a new job in Australia.

The company is winding down its activities.

From now on, ACVL will be a property manager only for land it owns, which is occupied by seven syndicate bases.

Mr Kiely, who will remain chairman, will announce a new chief executive soon.