PROVIDENCE – The U.S. Sailing Association, the sport’s national governing body, is suing three of its former members and AmericaOne Inc. for allegedly stealing trade secrets and breaches of contracts, according to a report in Rhode Island Lawyers Weekly.
In a complaint filed in U.S. District Court, the Bristol-based U.S. Sailing Association accuses American yachtsmen Paul Cayard, William Ruh and Jose Spina and AmericaOne of harming both the governing body and U.S. sailing team.
The three men left U.S. sailing in February 2023. Cayard resigned as U.S. Sailing’s executive director for U.S. Olympic Sailing and shortly after Ruh’s resigned as the director of U.S. Sailing and Spina resigning as the association’s performance director. The complaint claims Cayard and Ruh became members of Berkley, Calif.-based AmericaOne’s board of directors and Spina becoming the company’s performance director.
The lawsuit also accuses AmericaOne of breaching a contract to fund a project with U.S. Sailing to develop young athletes for Olympic-level competition. U.S. Sailing launched Project Pipeline in 2015 with a $5 million gift from the AmericaOne Foundation.
U.S. Sailing claims that under a written contract, AmericaOne is obligated to pay the pledged $5 million over a 10-year period in annual installments.
According to the complaint, on March 1, 2023, AmericaOne notified U.S. Sailing that it would no longer be making installment payments under the agreement, citing a “lack of confidence” in U.S. Sailing’s ability make the Pipeline Project successful.
The lawsuit claims Cayard and Ruh induced AmericaOne to breach its commitment to fund the Pipeline Project. U.S. Sailing also alleges it suffered more than $4 million in losses due to Cayard, Ruh and AmericaOne interfering with U.S. Sailing’s business relationships with its donors and sponsors.
U.S. Sailing also accuses AmericaOne of misappropriating trade secrets and unfair competition, asserting the tree men are liable for the theft and misuse of U.S. Sailing’s trade secrets and confidential information to enhance their business while “willfully and maliciously” harming US Sailing’s business and reputation. The complaint asserts claims for defamation and false light against Cayard, Ruh and AmericaOne for making false, fictitious and disparaging statements about U.S. Sailing as part of a “larger misinformation campaign” aimed at securing AmericaOne’s leadership of Olympic-level sailing in the U.S.
U.S. Sailing is seeking injunctive relief to prevent the defendants from using the plaintiff’s proprietary information. In addition to claiming it had suffered in excess of $5 million in actual damages as a result of the defendants’ conduct, the plaintiff seeks punitive and exemplary damages, plus attorneys’ fees and costs.
In a statement dated Monday, Lawrence G. Finch, chairman of the AmericaOne Foundation, said U.S. Sailing’s claims are meritless, adding that his company has provided more than $6 million to U.S. Sailing and other sailors over the past 15 years.
“The accusations being levied … are unfathomable,” Finch wrote. “But what is even more egregious is that they would take this action immediately after the U.S. Olympic trials – a time when we should be celebrating our athletes who have trained so hard for the past four years and supporting them as they get ready for the biggest race of their lives. ... Instead of ramping up focus on fundraising and athlete support, they are working to divide our community by publicly attacking their largest supporter.
"Today, AmericaOne is being targeted as a scapegoat for USSA’s own shortfalls in supporting American sailors,” Finch said. “It is unconscionable that a national governing body - especially at this time in the Olympic cycle - would focus on anything other than fully supporting their Olympic hopefuls.”
The case has been assigned to Judge Mary S. McElroy, with a referral to U.S. Magistrate Judge Patricia A. Sullivan.
(SUBS paragraphs 10-12 with comment from AmericaOne.)
