In legal action filed this morning (NZT) in the New York Supreme Court, the Auckland-based yachting syndicate will seek up to $50 million in compensation for the delays - plus damages.

It has also filed papers in the Federal Court, claiming Bertarelli's Alinghi team and Cup organisers AC Management have acted in an anti-competitive manner.

The 33rd America's Cup was to be staged in Valencia in 2009, but is now unlikely to be held until 2011. Since Alinghi beat Emirates Team New Zealand 5-2 last July, the event has been mired in controversy and legal jousting. United States challenger Oracle has accused Alinghi of rigging the event in its favour.

Team NZ's managing director Grant Dalton told the Herald the syndicate felt it was forced to take the legal action, saying he felt he had a duty to protect the investment in the team over many years.

The continued delays were impacting on the team, and the integrity of the America's Cup itself.

"We're taking a hit in the pocket, the brand of Emirates Team New Zealand is taking a hit and the event is taking a hit," said Dalton.

At the centre of the compensation claim is an agreement signed between Dalton and Bertarelli before Team New Zealand confirmed its entry for the next Cup.

"There were two quite key points in that [contract] - the first was that it would be in 09 and the second that it would be in Valencia and they happily contracted those things on which basis we commenced work."

Late last year, Team NZ wrote to Bertarelli seeking compensation on the basis that the contract was not being honoured.

"Frankly, they didn't have the courtesy of even replying," said Dalton.

Now they have taken it to court to claim compensation for the direct costs, but also the damage incurred to the team's brand.

The second case, taken under US "anti-trust" laws, alleges that the Swiss have abused the power conferred to the defender under the Deed of Gift, the document which has governed the Cup through its 157-year history.

Dalton says that by accepting a challenge from a "sham" club, Spanish CNEV, Alinghi were able to impose rules for the next event which were one-sided and designed to give it a competitive advantage.

"The protocol has increased the cost for all teams and given them a larger piece of the pie in an anti-competitive environment."

Oracle launched a case last year, also alleging Alinghi's "challenger of record", CNEV, was illegitimate and that the Swiss defender had set rules for the next Cup which were unfairly weighted in its favor.

It wanted the court to impose it as the challenger of record and to endorse more traditional rules of the race regatta.

A proposed out-of-court settlement, agreed to by Oracle and other challengers, would have seen the event go ahead in 2009, but it was rejected by Bertarelli.

AC Management announced on November 22 that the Cup was to be postponed, saying Oracle was "holding the event to ransom" through its court action.

On November 27, Judge Herman Cahn made a preliminary ruling in Oracle's favour, but he has subsequently heard further arguments from both sides before issuing his final decision, which is expected soon.