Cup rebel defies $1.7m order

By HELEN TUNNAH and AINSLEY THOMSON

Lawyer Sean Reeves has vowed to fight a bid by the wealthy America's Cup syndicate OneWorld Challenge to make him pay the $1.7 million damages awarded against him by an American court.

OneWorld say they will chase their former operations manager through the New Zealand courts for the money and to ensure he honours a confidentiality agreement.

The Seattle syndicate took legal action against Mr Reeves last year after being told he was trying to sell their secrets to another syndicate.

Yesterday, an American court ruled in a summary judgment that he had broken his confidentiality agreement with them.

Damages of between $500,000 and $675,000 would be awarded against Mr Reeves, the ruling said.

OneWorld can also claim legal costs, which they say will top $1.1 million.

Mr Reeves told the Herald last night that the court action was an attempt to gag him and block his claims that it was OneWorld that improperly obtained Team New Zealand secrets from the last cup contest.

He said he might go to the police or the Serious Fraud Office with his accusations.

He doubted any New Zealand judge would allow OneWorld to file their US judgment here.

"What this litigation is all about is gagging me. I am incredibly dangerous to these guys. I was on the ground all the time. I'm going to ensure the truth comes out."

Mr Reeves has always denied he tried to sell OneWorld's secrets.

Instead, he says, OneWorld got secret Team New Zealand design information when they hired crew, including principal designer Laurie Davidson, from the cup holders.

OneWorld executive director Bob Ratliffe said the team felt vindicated by yesterday's judgment.

"It's like a dark cloud passed over us," he said.

Judge Barbara Jacobs Rothstein's judgment, issued in Seattle, was highly critical of Mr Reeves and of his claim that he signed the confidentiality pact under duress.

She said he was "handsomely compensated over a number of years".

"Reeves has repeatedly breached the agreement by divulging confidential information," she said.



Set up by telecommunications billionaire Craig McCaw and backed by Microsoft co-founder Paul Allen, the $161 million OneWorld challenge will be one of the strongest in the Louis Vuitton Cup challenger series, which starts next week.



Their task has been helped by the dozen former Team New Zealand crew, including Davidson, who followed Mr Reeves to OneWorld weeks after the last America's Cup in 2000.

The judgment addressed only the confidentiality breaches, and did not rule on OneWorld's claims or Mr Reeves' counterclaims.

Mr Ratliffe said OneWorld had no option but to take action against Mr Reeves, and would continue to do so.

"We will enter the judgment against him in a New Zealand court to attempt to collect it," he said.



"This has never been about collecting money for us. It's been about vindication and stopping him."