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America's Cup dispute nears deal

TNZ's victorious yacht, NZL60, now in the middle of a dispute

AUCKLAND, New Zealand -- The America's Cup dispute that reached a stalemate last week when its arbitration panel refused to rule on disputes for fear of being sued is close to being resolved, the AFP news agency said.

According to the New Zealand Herald, talks got underway on Friday with several of the syndicates and a settlement is likely within days.

The settlement is expected to secure a deed of indemnity and insurance against legal action for the five international panel members. All 10 America's Cup syndicates are expected to sign it.

With some syndicates spending up to $100 million (£64 million) on their campaigns, the panel had become concerned about crippling legal action stemming from its decisions.

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But Team New Zealand's rules adviser Russell Green told AFP substantial progress had been made and he was confident the matter would be resolved this week.

Outstanding disputes include claims America's Cup challenger OneWorld broke competition rules by buying design and construction secrets.

The Seattle-based team has denied the accusations, which are in an affidavit lodged in an American court by former Team New Zealand (TNZ) lawyer Sean Reeves.

The arbitration panel can decide to impose penalties ranging from fines or even disqualification against teams or individuals.

The Louis Vuitton Cup, the challenger series, is due to start on October 1. The America's Cup is being staged in New Zealand in February 2003.