The 1988 America's Cup was the first hostile Deed of Gift challenge.
Dennis Conner had won the America's Cup for
San Diego Yacht Club on February 4, 1987, at the
1987 America's Cup. In July, New Zealand banker
Michael Fay went to the San Diego Yacht Club and issued a Notice of Challenge from the Mercury Bay Boating Club of New Zealand, which was based on a strict reading of the Deed of Gift. The Fay challenge stipulated that the boats to be sailed would be defined only by the details of the Deed, namely single masted yachts no more than at the waterline and that the race would be held the following year in 1988. He proposed to bring a 90-foot racing yacht for his challenge boat. San Diego Yacht Club, who wanted to continue running the Cup regatta in
12-metre class yachts, initially rejected Fay's challenge out of hand. Fay then took the dispute to the
New York State Supreme Court, which on 25 November 1987 declared the challenge valid and instructed San Diego Yacht Club to meet the challenge on the water, brushing aside the twenty-one 12 Meter syndicates that had declared their intention of racing in a 1991 America's Cup regatta. The unconventional challenge was met with an unconventional response. As the challenge used the original Deed of Gift as its basis, there were no explicit class or design requirements other than that the boat was to be or less at the waterline if it had one mast. Thus San Diego Yacht Club and the Sail America Foundation chose the assuredly faster multi-hull design. On 5 May 1988 the Cup returned to the courts with Michael Fay seeking a court ruling that the catamaran was an invalid defender. The court instead ruled that the cup should be contested on the water, and any further legal action should be delayed until after the race. ==Boats==