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African-American syndicate withdraws request for America’s Cup injunction - Trade Only Today

African-American syndicate withdraws request for America’s Cup injunction

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African Diaspora Maritime Corp. withdrew its motion for a preliminary injunction to stop the America’s Cup.

New York Supreme Court Judge Barbara Kapnick last week ordered the motion permanently withdrawn per an agreement reached between African Diaspora Maritime and the Golden Gate Yacht Club, according to court filings. Neither side had any comment. The order says neither side waives any of its rights to pursue other legal action.

African Diaspora Maritime had asked Kapnick to order a stop to Cup racing while the African American syndicate’s complaint — that the yacht club did not act in good faith in rejecting its application to race against Oracle Team USA for the right to defend the Cup — plays out in court.

Kapnick ruled against African Diaspora Maritime in January. The Appellate Division of the New York Supreme Court breathed new life into the 1-1/2-year-old allegations June 25 when it upheld Kapnick’s dismissal of two counts against the yacht club — breach of trust and breach of fiduciary duty by self-dealing — but said there was an enforceable contract between the yacht club and African Diaspora Maritime and enough grist for the lower court to consider whether the yacht club acted in bad faith in its review of African Diaspora Maritime’s application.

That complaint remains active.

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