Ruling in America’s Cup Dispute : Arbitrator Dissolves Committee; New List to Be Submitted

The arbitrator in the dispute over the makeup of the defense committee for the next America’s Cup ruled Friday that the seven-man panel appointed by the San Diego Yacht Club should be dissolved and instructed the Sail America syndicate to submit a new list of nominees.

Sailors would call it a throw - out-- a race that doesn’t count--but both sides seemed pleased with the decision by Charles W. Froehlich Jr., a retired State Superior Court justice serving under the auspices of the American Arbitration Assn.

“I think this is the result we wanted to see,” said Ken Poovey, attorney for Sail America.

Dr. Fred Frye, commodore of the yacht club, said: “We see this as the beginning of a stronger and more fruitful relationship with Sail America.”

The yacht club sponsored Dennis Conner’s campaign to reclaim the America’s Cup under an agreement of September 1985. That agreement stipulated that should Sail America win the Cup, the club would appoint the next defense committee from a list of nominees submitted by the syndicate.

The first important task of the committee would be to select the 1991 defense site.

However, Sail America has not committed itself to favoring San Diego as the site, so the club, fearful of losing the event, selected six of its own members, plus another San Diego yachtsman, ignoring several international sailing figures nominated by the syndicate.

Sail America found that unacceptable and took the issue to arbitration, as provided by the agreement.

Although Froehlich said the club acted “in accordance with the literal terms of the written agreement,” and that Sail America “made a mistake in its nominations,” believing that some of its appointments had been pre-approved by the San Diego Yacht Club, he thought it was best that they start the process of appointing a new committee from scratch.

Froehlich did not address the matter of mutual distrust, dbut Frye said: “I hope that will all be cleared up.”

That apparently would require a commitment from Sail America, whose key leaders--Conner, President Malin Burnham and trustee John Marshall--were in Sardinia Friday preparing for the World 12-Meter Championships starting next week.

The club will still have the votes to assure the event being held in San Diego. The agreement stipulates that a majority of the committee be members of the club.

But Froehlich said: “I would anticipate that they would be able to work together. The division of responsibilities with respect to the next America’s Cup is a very delicate one, and both the yacht club and Sail America have important jobs to perform, each of which is dependent on the success of its partner. I would anticipate that they would cooperate in the future.”

The dispute put the site selection on hold for two months. Originally, the club had planned to announce the site in Sardinia, where the championships end July 11.

“Obviously, we won’t be able to do that,” Frye said. “I’m very concerned, and so is Sail America, about holding up the decision. This isn’t good for the Cup.”

However, the process could restart when Burnham returns from Sardinia after July 4, Frye indicated. Aug. 15 is now being mentioned as a target date for picking a site.

“That certainly is a reasonable time frame,” said Patrick Goddard, rear commodore of the club.