The America's Cup was back in court yesterday to decide details of the 33rd series, which should be held off Valencia in 2009.

During the today's hearing in the New York State Supreme Court, Justice Herman Cahn allowed the parties to argue their positions and he focused his questions on the legitimacy of Club Náutico Español de Vela as Challenger of Record under the Deed of Gift.

"The focus of the judge was purely a technical, legal analysis of the Deed of Gift", commented Hamish Ross, Alinghi's General Counsel. "It does not concern the protocol at all, it does not concern Oracle’s objections to the terms of the protocol. It is purely and simply whether the CNEV (Club Nautico Español de Vela) is a valid challenger under the Deed of Gift and it focuses on two major issues. Is it an organized yacht club? Is the annual regatta required to be held before the challenge or can it be held after the challenge?"

The Golden Gate Yacht Club lawyers maintain that the Club Nautico Español de Vela (CNEV), formed only days before the last cup races ended, does not meet the requirements of the Deed of Gift, the trust document that sets the basic rules of the competition.

GGYC insist that for CNEV to be a legitimate challenger, it must, under the deed, have held an annual regatta, which it has not. GGYC was the next club to challenge, and would take precedence if its case is upheld.

Following today’s hearing, Justice Herman Cahn, who has already received written evidence from both parties, adjourned the court for "a few days."(within 2-3 weeks commented Hamish Ross).

Alinghi and BMW Oracle met before the afternoon hearing before Cahn to try and reach a compromise but, despite Both sides said the talks had been "constructive", again failed to settle their three-month row.

Later in the day, Alinghi have made a new proposal aimed at ending the legal dispute which could be a 'take it or leave it' deal.

"We have put a proposal to Oracle and are waiting for their response", said Hamish Ross on Tuesday. "It certainly is our goal to hold the America's Cup in 2009. It certainly is the goal of the other entered challengers as well but this very much depends on Oracle's litigation. I must say that the window for 2009 is rapidly closing, very rapidly. Unless we have some certainty in the next few weeks then the regatta will be forced to be postponed".