Justice Nye Perram heard the case involving ACT Cross Country Club and its event manager, Cundy Sports Marketing.

The club's lawyers told the court yesterday the ACT Government would not undertake the necessary preparations for the marathon one of Canberra's most successful sporting events until the case was settled.

The race relies on taxpayers' funds and the Government's cooperation to close the roads along the course.

Barrister Steven Hausfeld told the judge, ''The Government has said, 'Oh, for goodness sake, sort this thing out.'''

The dispute centres on the decision by the club and the promoter, Dave Cundy, to sign a memorandum of understanding in 2002 that gave the promoter management rights to the marathon and financial autonomy.

Previously, the club had simply paid Cundy Sports Marketing an operator's fee.

When the two parties signed the memorandum, they also established a separate sponsorship agreement, detailing the money, equipment and volunteer support the club would supply to help Mr Cundy run the event.

The dispute emerged midway through last year, when, with the expiry of the sponsorship agreement approaching, the club reviewed the marathon and its future management.

The club says its members are concerned by the poor support Mr Cundy gave volunteers on race day, increasing entry costs and a lack of financial rewards to the club from the event.

The club says it never intended to give Mr Cundy ownership of the marathon and only signed the memorandum to give the promoter the financial flexibility he had argued was needed to improve the event.

The club lodged an application late last year to trade-mark the name ''Canberra Marathon''.

Mr Cundy responded last month by lodging a notice of opposition.

Complicating the dispute is that Mr Cundy, who managed the marathon at the 2000 Sydney Olympic Games, is a life member and former president of the club, though he now lives on the NSW Central Coast.

Mr Cundy argues he and his wife and business partner, Fran Seton, saved the marathon from collapse in 2002 and built it into one of Australia's best races.

The matter will return to court on October20.