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Cup panel seeks legal protection

AUCKLAND, New Zealand -- The arbitration panel ruling on an America's Cup dispute is seeking legal protection to prevent it being sued, according to a press report.

The panel is deciding on a dispute between America's Cup holder Team New Zealand and challenger OneWorld over the transfer of technical boat information.

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The America's Cup Arbitration Panel, which has the authority to expel entrants and impose heavy fines, has told all syndicates it must be protected and insured against legal action, the New Zealand Herald newspaper reported on Tuesday.

Panel registrar Martin Foster said the panel was being asked to make judgments that could have significant financial repercussions, and members needed protection.

"In real life, judges are fully indemnified. They wouldn't take their responsibilities on unless they were," he told the Herald.

"Here you've got a situation where the panel is asked to adjudicate on some very major issues with substantial financial implications.

"I'm hopeful that the matter can be resolved ... The panel ... can't be allowed to just cruise along."

A proposed Deed of Indemnity has been given to all the syndicates, but none has yet agreed to sign it, the newspaper said.

The panel is made up of five judges and lawyers from around the world, including two New Zealanders.

OneWorld says it does have access to some Team New Zealand technical information, but that the material is not used and is not significant. The syndicate has asked the panel to rule on whether it has broken any rules.

Team New Zealand said in evidence that the design information was significant, and questioned the eligibility of OneWorld's challenge.