Reeves'
defence against OneWorld rejected (05/16/02) (source
: NZ
Herald)
The Auckland lawyer at the centre
of claims he tried to sell secrets from America's
Cup syndicate OneWorld Challenge has had one plank
of his defence thrown out of court in the United States.
Sean Reeves' "unclean hands" defence against OneWorld,
in which he said they had broken Cup rules so could
not sue him, has been struck out by a Seattle court.
OneWorld last year launched a civil lawsuit against
Reeves, their former operations manager and a former
Team New Zealand rules adviser, saying he had tried
to sell design secrets worth US$2.5 million ($5.4
million) to rival syndicate Oracle Racing of California.
The six-month saga of the design
secrets allegedly illegally held by the Seattle-based
America's Cup challengers OneWorld, moves nearer to
resolution tomorrow. It is the final deadline set
by the America's Cup arbitration panel for defenders
Team New Zealand to lodge their final submissions.
In a mass of documentary evidence supplied to the
panel, OneWorld are said to have illegally acquired
information from the Team New Zealand, America True
and Prada campaigns of 2000, but by far the most damaging
allegations come from TNZ suggesting a systematic
plundering of the secrets of their cup winner, NZL-60.
Technology transfer is strictly prohibited by America's
Cup protocol and OneWorld admitted last year that
they had inadvertently obtained materials from the
2000 Cup campaigns that belonged to Team New Zealand
and America True.
TNZ now say the amount of secrets acquired by OneWorld
far exceed - in scope and detail - what had been admitted
in the submissions prepared by OneWorld's lawyers
on behalf of designers and sailors.
The New Zealand team want the panel to hold hearings
so that witnesses can be cross-examined to see if
further facts can be unearthed. In a setback for OneWorld,
TNZ have managed to get a statement from Reeves which
is admissible by the panel.
Much of the case will hinge on the meaning of the
word "acquire". TNZ say design data held in former
team members' laptops means that the Seattle team
have full possession of it. They argue that personal
materials are not acquired by the team unless there
is a formal transfer.
The five-man panel have not announced whether they
will determine the case on paper evidence or by a
hearing.
On the one side, Ross Blackman (CEO, Team NZ)
explained, "the resultant media coverage of the
court case in Seattle [OWC vs Sean Reeves] resulted
in OneWorld feeling it appropriate to put a submission
to the Arbitration Panel which is the ultimate decision
making body in our sport – in the America’s Cup".
"They put a pretty frank submission to the Arbitration
Panel acknowledging certain things that had been stated
by the media. They felt that was the best way to put
it out in the air and get a ruling. The process is
such that once a submission has gone in, the Arbitration
Panel circulates it to all contestants. They have
the right to put a submission in. We put a submission
in and that is now before the Arbitration Panel. And
we will await the ruling on it".
On the other side, the OneWorld's executive director,
Bob Ratliffe, said the informations possessed were
minor and had no bearing in the creation of the two
new OneWorld boats, both of which are being tested
in New Zealand, and the teamsought a ruling from the
event's arbitration panel over the material.
OneWorld did so expecting to be fined for its transgressions.
"As near as I can tell, we did something that's unprecedented
in the America's Cup," Ratliffe said. "We confessed."
But now, the case seems to become more serious and
its participation in the regatta is in the hands of
the arbitration panel, which has the authority to
expel entrants and impose heavy fines.
Allegations that OneWorld Challenge improperly obtained
vital Team New Zealand secrets will be aired at a
closed meeting with two of the panel this weekend.
That meeting will decide whether a full hearing is
needed to hear evidence on the claims.
In the same time, the America's Cup Arbitration Panel
has told all syndicates it must be protected and insured
against legal action. With campaign costs now topping
$100 million for some syndicates, the panel's move
was described by leading sports lawyer David Howman
as "very wise".
The panel has put the dispute over insurance and a
deed of indemnity - effectively ensuring cup syndicates
or other parties cannot sue them - on the meeting
agenda. A proposed Deed of Indemnity has been given
to all the syndicates, but none has yet agreed to
sign it.
Panel registrar Martin Foster yesterday confirmed
that the panel was not expected to release any more
decisions on any questions before it until the matter
was settled. He said the panel was being asked to
make judgments that could have significant financial
repercussions, and members needed protection.
In a phone interview from Seattle late last week,
when asked about the possibility of OneWorld's expulsion
from Cup racing, the group's executive director, Bob
Ratliffe, said, "I think it's highly unlikely, but
I'd be lying if I said I wasn't worried about that
terrible outcome."
The Seattle-based and outraged OneWorld
America's Cup team have responded to Team New Zealand's
legal salvo in their filings to the competition's
arbitration panel.
OneWorld have not been deflected from their position
that their problems lie at the door of their former
employee, Sean Reeves, who they are suing in a civil
action in the United States, and that they did the
correct thing in owning up to the panel for what they
believe to be relatively minor rules breaches.
"The truth in all this will ensure that we come through,"
said Gary Wright, the OneWorld chief executive.
The most damaging allegation made by Reeves is that
a series of designs made by Laurie Davidson, who switched
from TNZ to OneWorld, could include Team New Zealand's
winning boat from 2000, something Davidson has strenuously
denied.
"Laurie is willing to sit down with Tom Schnackenberg
[TNZ's design director] and compare drawings to prove
none of the boats are the same," said Wright, "provided
that TNZ goes on television and makes a public apology
to show how they have been taken in by Reeves."
Team New Zealand, the America's Cup holders,
have claimed that the Seattle-based OneWorld team,
backed by telecommunications billionaire Craig McCaw
and Microsoft co-founder Paul Allen, should not be
considered a legitimate challenger for next year's
event.
For nine months OneWorld have been wrapped up in a
secrets-for-sale row involving their disaffected former
employee, Sean Reeves, which resulted in a civil action
in Seattle. Reeves claimed OneWorld possessed secrets
from TNZ's successful defence of the cup in 2000.
This forced OneWorld to admit to the America's Cup
disputes body, the arbitration panel, a string of
technology transfer violations, all of which the Seattle
team claimed were minor and of no bearing to the creation
of their boats.
TNZ remained silent until Friday, when the deadline
for final submissions to the panel closed. Now they
have produced rebuttals, affidavits and evidence which
- if true - put OneWorld under acute pressure. OneWorld
are alleged to have drawings, data and specification
on TNZ's hulls, rigs and laminates.
TNZ claim the Seattle syndicate have not made full
and frank disclosures, that Reeves's allegations must
be considered and that "condoning or minimising the
seriousness of OneWorld's actions" would destroy a
fundamental tenet of the America's Cup, that boats
are bona fide products of the challenging country.
As such, TNZ conclude, OneWorld would never be able
to sign the contract required before the cup match
is sailed, swearing that it was in complete compliance
with the rules. The OneWorld team were unavailable
for comment last night.
OneWorld
Challenge Launches USA 67 (03/26/02) (source : OneWorld)
The OneWorld Challenge America’s Cup team launched
their second International America’s Cup Class yacht,
USA 67 today, which kicks off an intense racing and
testing program with USA 65 which they christened
on March 4, 2002.
OneWorld is the first of the 2003 America’s Cup teams
to have both of their new boats on the water in New
Zealand where racing will begin with the Louis Vuitton
Cup in October of this year.
New
boats at the Viaduct Basin (03/02/02) (source : Louis
Vuitton Cup)
Making their sailing debut on the Hauraki Gulf
today was the second Italian challenger syndicate
Mascalzone Latino. Having bought USA-55 (ex-Stars
& Stripes ’99) from the OneWorld syndicate last week,
the Italians wasted little time in changing the sail
numbers on an original 1999 Stars & Stripes mainsail
to ITA-55, and pushing off from the dock early to
taste the America’s Cup course for the first time.
Most of the Mascalzone crew had flown into Auckland
over the last few days and its base, sandwiched between
Oracle Racing and OneWorld Challenge, has been a hive
of activity all week. Although a container park today,
building work on a shed and offices starts on Monday,
and sailing manager Tom Weaver will have a busy time
co-ordinating sailing everyday as well as construction
work ashore.
Next door to the newcomer Italians’ base another new
boat has been peeking its bow out of the OneWorld
syndicate’s shed. The first of the two new boats that
have been built for the OneWorld Challenge, USA-65,
will take to the water on Monday after a small naming
ceremony. The new boat is dark blue with an exciting
pattern on the topsides.
Sean
Reeves - The picture of a pariah (02/22/02) (Source
: NZ
Herald)
Since last few weeks, nobody or
almost knows who Sean Reeves is. Today, the Auckland
lawyer is under limelight.
However, Reeves is not a newcomer in the Cup World.
While Reeves may not be known to most New Zealanders,
he has a long list of yachting achievements and knows
most of the big names of New Zealand sailing.
Mr Reeves, aged 40, was raised in a Catholic family
of six in New Plymouth. His grandfather, St Leger
Reeves, was a lawyer for 60 years, his father, Manning,
has been practising law for 50.
At the age of 8 he began crewing a Sunburst with his
older brother in the rough seas off the New Plymouth
coast. At 15, he teamed up with a local sailor to
race in the two-man 470 Olympics class and in 1980,
aged 19, he was named as reserve for the Moscow Olympics.
After New Zealand boycotted the Games, Reeves was
asked by Dickson to crew with him in the Laser 2 class
at the World Youth Championships in Texas. They won,
and it was the beginning of a successful four years
for the pair. "We had great years together."
Reeves describes travelling the world on shoestring
budgets supplemented by the odd sports grant and hanging
out with up-and-coming yachties such as Russell Coutts
and David Barnes. "We were like a travelling New Zealand
yachting family."
Reeves and Dickson were aiming for the 1984 Los Angeles
Olympics and won medals at three pre-Olympic regattas,
but the relationship fell apart shortly before the
big event. Reeves teamed up with Peter Evans and beat
Dickson to win the 470 spot for New Zealand at the
Olympics. They finished out of the medals.
After finishing law school at Canterbury University,
Reeves moved to Auckland and began practising commercial
and property law. He says in 1993, Coutts asked him
to join Team NZ as a rules adviser. "He said, 'We've
had dreadful problems with the rules'.
There was 'glassgate' in 87, the big-boat, catamaran
debacle of 88 and the bowsprit protest of 92. It seemed
New Zealand was always on the losing end of the rule
book and Russell said to me, 'We have to turn this
around or we'll never win the America's Cup'."
Reeves paints a rosy picture of his time with Team
NZ, saying he gained "Blakie's" (Peter Blake) trust
while sharing an office with him. But one Team NZ
insider says Reeves fell out with the team a month
before the finals in 2000 because he was "loose-lipped.
From then on he was an outcast," the source says.
"Coutts wanted him fired but Blake wouldn't agree."
Reeves helped to draft the protocol for the 2003 cup
and left the team when his contract ended at the end
of the finals. He went back to practising law in Devonport.
He was then asked by Gary Wright, soon-to-be chief
executive of One World, to join the new syndicate
backed by McCaw. Auckland lawyer came on board and
then helped to lure a clutch of top sailors and designers
from Team NZ. Reeves claims One World relied entirely
on him for advice and guidance and he refers to the
syndicate as "my baby".
Wright says Reeves had no part in some of the recruitment.
Wright says McCaw does not concern himself with Reeves,
and would not know him if he saw him on the street.
"He's a distraction that Bob Ratcliffe and I deal
with."
Sean Reeves was bought out of his contract in May
last year for a reported $1.3 million and now, he
have to fight against powerful forces. A very bad
position and Reeves said if OneWorld dropped its lawsuit,
he would happily drop his.
Gary Wright explained it was not that easy but he
said it might be possible to reach a settlement with
Mr Reeves once the America's Cup arbitration panel
had ruled on OneWorld's alleged protocol violations.
The End of the Nightmare ...
