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Rules - Luffing v Sailing above proper course
Very interesting scenario. You can look at this from lots of different ways.
Geohan cites rule 18.5, but this rule only says that in passing a continuing obstruction (a seawall? An overlapped boat one is obligated to give room to/keep clear of?) rules 18.2(b) and (c) don''t apply. Presumably, 18.2(a) still applies, and might be controlling. But which boat constitutes the obstruction? L? C, based on how W obtained overlap?
Based on pure fair play principles, I''d have to say we need one more piece of information: Were W and L overlapped prior to C squeezing between them? If so, L had luffing rights over W, and C''s intervention should not change the fact. Conversely, if W was clear ahead, C''s intervention should not grant rights to L over W that it otherwise would not have but for the presence of C.
The other interesting aspect of this is when you see this situation prior to the start. I think the answer in this case is straightforward; before the start there is no "proper course" so L can take up any number of boats to windward regardless of how the overlaps are established.