New York: Defending champion Alinghi said it was waiting to see “the next legal moves” after a New York judge ruled that Ras Al Khaimah cannot host the 33rd America's Cup based on the 19th-century document that governs sailing’s marquee regatta.

Alinghi skipper Brad Butterworth said the ruling was "disappointing for the UAE as the venue really lends itself to sailing these boats. Now none of this has anything to do with racing boats so I will wait and see what legal move is next."

The decision by Justice Shirley Kornreich of the New York State Supreme Court was a blow to two-time defending champion Alinghi of Switzerland, which picked the Arabian Gulf port for its February match against American challenger BMW Oracle Racing.

Kornreich said her decision was based on the stipulation in the 1887 Deed of Gift that the America's Cup cannot be sailed in the Northern Hemisphere between November 1 and May 1, not on concerns by the Americans that Ras Al Khaimah was unsafe due to its proximity to Iran. "I don't believe that I have the ability to deviate from the Deed of Gift," Kornreich said.

Acknowledging that time was growing short to organize the regatta, Kornreich said she ruled from the bench on Tuesday to give Alinghi's backing yacht club, Societe Nautique de Geneve (SNG), time to appeal if it choses. “I think that the race is being endangered,” she said. The best-of-three series is scheduled to begin on February 8.

The Swiss picked Ras Al Khaimah based on an earlier order by a now-retired judge that they could sail the match in Valencia or “any other location selected by SNG.” The Americans fought the choice based on the Deed of Gift, arguing in one court document that Ras al-Khaimah was no more eligible to host the America's Cup than the Colorado River.

The Swiss team’s lead counsel, Lucien Masmejan, said in a statement that the ruling was “a disappointing result as we were certain that Justice Cahn's May 2008 decision allowed the defender [Alinghi] to chose Valencia or any other location… Ras Al Khaimah has put enormous time and effort into this 33rd America’s Cup project. We thank them and feel sorry for this unexpected result out of the New York court.”

The Swiss side has already brought its giant catamaran Alinghi 5 to Ras Al Khaimah, while the US side's crew is training on its trimaran in San Diego, California. The rare one-on-one showdown in massive multihulled boats now appears headed to Valencia, Spain, unless the bitter rivals can agree on another port that complies with the Deed of Gift. In that case, it would have to be in the Southern Hemisphere.

"Your honor, you’re cancelling the America's Cup," said attorney Barry Ostrager, who represents SNG, after Kornreich announced the ruling. “This is sort of a cataclysmic decision that you're making," he added, warning of “colossal harm to the sport, the event, to Ras Al Khaimah and the America's Cup." He later softened the "canceling" remark, saying the next step was for SNG to determine whether it's possible to stage the race in February.

Oracle spokesman Tom Ehman said Oracle was “very pleased with the decision. It means the 33rd edition will take place in Valencia in February. It's just fine. There is no problem in sailing at that date in Valencia.”

“It's the only place they can choose although we are ready to sit down with them to discuss. Today's decision proves again their reckless disregard for the 'Deed of Gift' and that they were wrong in choosing Ras Al Khaimah,” he added.

Alinghi and Oracle, owned respectively by Swiss biotech billionaire Ernesto Bertarelli and his one-time friend American computer billionaire Larry Ellison, have been engaged in a two-year legal battle over the Cup which looks set to continue.

Oracle intends to press ahead with its legal bid to remove Alinghi as trustee of the event, Ehman said. Earlier Tuesday the Golden Gate Yacht Club (GGYC), which represents Oracle, said it has asked the New York Supreme Court to replace the Swiss syndicate with a "faithful, fit and proper substitute to oversee the next match to be sailed in 2010, starting February 8." It accused Alinghi of abusing their position by making "secret commercial deals."