The glory days of Delaware look to be farther and farther behind us folks, as I look into my rear-view mirror. Delaware’s economic struggles have grown, it’s a destination for late-term abortion, unemployment is worsening, the courts are corrupt, members of the legislative are at odds with each other and there seems to be limited compromise.
Delaware was once a place I was proud to say I was born and raised. It is America’s first state — known as the small wonder — a national leader in economic development, first in judicial equity court, great beaches and fishing, no sales tax, and a legislature that always sought compromise.
And to make matters worse, University of Delaware football — my fall weekend escape — has been awful. I have deep pride in the University of Delaware, where I earned a Bachelor’s and Master’s degree. The football team used to dominate Division 1 AA football with occasional big-school upsets. UD’s glory days are gone and I fear the state is following the same path.
Whether you are a Republican, a Democrat, or an Independent, ask yourself: Are you OK standing by while our economic resources dwindle? Are you OK with fewer jobs? Are you proud to be from a state that allows our state’s Equity Court to operate with perceived corruption? Which seems to be overlooked by the Bar Association?
And our courts are in shambles. Chancery Court Chancellor Andre Bouchard has put Delaware in the national spotlight with the way he handled and continues to handle the TransPerfect case. It has really taken its toll on our reputation. It was so bad that many employees banded together to form Citizens for Pro-Business Delaware and now Delawareans have joined in droves with over 5,000 members in the group. They’re going after our courts, asking for transparency and accountability. Finally, a group is actually looking for progress in Delaware, and of course, they’re met with resistance — when there’s a real chance here for Delaware to move forward.
I fear the outlook is bleak as Delaware’s state taxes will have to go through the roof as our corporate franchise taxes are being eroded.
I want to be proud of Delaware — I am no longer!
Am I alone in this? How are you feeling about our once great state??
OPINION
Dear friends,
Folks, you have to check this out… eye-popping stuff happening in Delaware! Right in front of law firm Skadden Arps’ office is a billboard on the back of a truck calling the firm out for a lack of diversity. I’m going to step aside, so you can scroll down and check out the article from Delaware Business Now.
Respectfully submitted,
Skadden Arps gets truck billboard treatment, with TransPerfect group claiming the law firm lacks diversity.
Citizens for a Pro-Business Delaware sponsored a billboard truck taking aim at the law firm of Skadden Arps.
The group, comprised of TransPerfect employees and Delaware residents, according to its website, has been calling for more diversity at the firm and others like it. TransPerfect has been in a long-running dispute over billing for a Skadden Arps attorney who served as custodian for the company deadlock.
He later ruled. in favor of Philip Shawe, who now owns all shares.
Said Citizens for a Pro-Business Delaware Campaign (CPBD) Manager Chris Coffey, “For months now our members have been calling for Delaware to make progress in diversifying its court system, but to no avail. We said from the beginning we weren’t going to be afraid of calling out those we see responsible for perpetuating a rigged system the only helps a select few, and this billboard shows how serious we are about that.
“The inequities in Delaware’s justice system, caused by a court system run by mostly white judges is a direct result of firms like Skadden Arps denying opportunities to people of color. We can’t possibly expect the judges in our courts to accurately reflect the racial, ethnic, gender, and socioeconomic diversity of this state if they aren’t given the opportunity to gain the relevant experience.
“Lacking diversity in our justice system is a national and systemic issue. But in a state that’s home to the country’s busiest corporate courts, where judges are handpicked to join an old boys’ club from top firms like Skadden, it’s critical we end the status quo.”
Skadden did not immediately respond to an Email message seeking comment.
Once again, a newspaper in Europe is writing about America’s First State — that’s Delaware, in case you didn’t know. In my view, this continuous and suspiciously absurd, seemingly biased operation that Chancellor Bouchard conducts in his Chancery Court is again raising its ugly head on the world stage.
This time it is mostly about racial diversity in Delaware, and a Spanish newspaper is writing about it. Criticism is being leveled at both the Skadden Arps law firm and the Delaware Court system itself. Frankly, folks, I don’t care about forced diversity and I think affirmative action has gone way further than it ever should have. I am about hiring the most qualified individual, regardless of race, sex, religion, or sexual orientation. But it is clear that the issues with the Delaware courts go beyond Republican and Democrat. We may not all agree on the solution, but it sure seems like we can agree there’s something rotten going on in Delaware’s courts, when rich country club friends are scratching each other’s back with taxpayer money.
Folks, please read the article below and get the European perspective which is significant, because it indicates the long term, international effect that Bouchard’s subjective rulings have had on business and Delaware’s future as an international incorporation destination.
The criticisms that this state has received from the North American east coast, once known for its fiscal advantages and its ability to attract companies, have diminished its competitiveness.
The TransPerfect case is one of the most complex and media in recent years. As a result of this controversy, more than 600 jobs in Barcelona and 5,000 worldwide were endangered, and the serious shortcomings of the Delaware judicial system that directly affect their businesses and citizens have been revealed.
The criticisms that this State has received from the North American east coast, once known for its fiscal advantages and its ability to attract companies, have diminished its competitiveness. Delaware citizens have watched helplessly as Supreme Court Judge Andre Bouchard decreed in recent years the forced sale of a private company with benefits.
This puts jobs at risk and granted control of the group to the Skadden law firm for personal affinities by hiding the records of the TransPerfect case to public opinion, among others. These actions have caused a negative impact on the prestige of the Delaware judicial system among American companies, institutions, and professionals.
Protests for lack of diversity
The lack of diversity has opened a new chapter in the crisis of its judicial system. The problem has gained greater social prominence since the U.S. Department of Justice opened an investigation to Judge Bouchard and Robert Pincus, a partner of Skadden, who managed the process of selling the TransPerfect company for alleged discrimination during 2017 when the company was under your control.
Civil and social rights activists such as the Reverend Al Sharpton and Dale Dennis have charged against the lack of diversity and led marches in Delaware claiming that judicial estates are not filled only by white men. They have also undertaken a commission to study diversity in the judicial system of the State of Delaware to give notoriety to this problem.
Reverend Dennis has led a protest rally at the doors of the Senate. And it is that the Executive Committee of this House has approved that Judge Paul Fioravanti replace the magistrate Tamika Montgomery-Reeves as a member of the Supreme Court of Delaware, while Al Sharpton has been denied the opportunity to testify in said judicial hearing.
Skadden, in the center of criticism
The Skadden Law Firm has been one of the main focuses of social criticism. Despite making a flag of diversity in their communications, the reality is that 9 out of 10 associates of the firms are Caucasian.
Bouchard and Pincus come from this firm, both involved in the controversy of the TransPerfect case and investigated by the US Department of Justice for alleged racial discrimination. In this sense, Pincus acted as the judicial administrator of the company during the sale process and during his tenure, he reduced the benefits in a proportionate manner to minority employees. In parallel, it swelled the bill in favor of Skadden.
4.1 million sanction
The firm had to pay about 4.1 million euros of sanction in 2019 for breaching the US Foreign Agents Registration Act (FARA) in the political lobbying works carried out with the convicted Paul Manafort. They are accused of benefiting the Government of Ukraine in 2012 and 2013 in favor of Viktor Yanukovych, president of that country from 2010 to 2014.
Sharpton and Dennis have affirmed by letter that, due to Skadden’s high weight in the State’s judicial system, it is precisely those who have the most obligation to promote diversity among their associates and the judges of the State. In the statement, they have also asserted that “the Delaware Court should resemble the people of Delaware, not just a minority.”
Dear Friends,
Everybody knows that I support President Donald Trump, not because he is a lovable character, or a really nice guy, or a wealth of morality. I support him because of his policies which I believe are good for America’s prosperity and the fulfillment of the American dream which is life, liberty, and the pursuit of happiness.
Capitalism, without a doubt, in a democracy creates an opportunity for all of us to better our lives. Businesses are able to flourish and hire more people, because of lower taxes and reduced restrictions. Folks, the economy of the United States is booming — it is the best it has been in many years. It is not because of anything Obama did, it is because of Donald Trump and he deserves the credit !
On the other hand, make no mistake about it, there is a clear and present danger of the United States becoming a socialist country with restricted freedoms, a place without hope, and a place that limits us to mediocrity. The press, our universities, and one-half of the voters actually embrace creating a socialistic society where nobody can get ahead. Socialism does not work — it is a proven fact. We are all not the same; we all have different talents and abilities. If you think taxing the very wealthy up to 70% will stop there, you are wrong.
Next, it will be millionaires, then people who make $500K, then $100K and then 50K, until everybody is broke. Tax and spend policies do not work.
Take a look at the failed policies throughout history — the Soviet Union, Cuba, and now Venezuela. Stop the madness, America cannot support the world, nor can it afford to pay for everyone’s health care and education on the backs of those who have worked hard and been financially successful.
The United States is finally reviving itself again as the land of prosperity and greatness, thanks to the policies of President Donald Trump. I can say with all confidence that if the U.S. goes the way of Bernie Sanders, Buttigieg, Cortez, Nadler, Schiff, Warren, Harris, Pelosi, and the likes of Maxine Waters… God help us all.
Respectfully Submitted.
JUDSON Bennett-Coastal Network
OPINION
Dear friends,
In a rare glimpse at actual emails coming from an ongoing Delaware Chancery Court battle, thanks to publicly available court documents, I’ve been able to read email exchanges between Delaware law firm Skadden Arps attorneys and executives at TransPerfect. They have been battling for years and I’ve been writing about it. I’ve taken the liberty to lift the emails directly from the court document, so you can read them yourselves, folks.
I would love to hear your thoughts on this! This case is making history in Delaware.
Respectfully yours,
Read the transcripts below:
From: Pincus, RobertB [[email protected]]
Sent: Monday, October 24, 2016 7:15 PM
To: Phil Shawe Cc: [email protected]
Subject: Re: Grant Thornton Progress Billings
I don’t know what “consciously approved”means. The policy was submitted to the Board, David was with you, and you complained about Roy losing his authority. Whether you approved or not, the Board approved it. The court approves my fees. If you believe that I am taking advantage of the Company, you should discuss with the Chancellor. The last time I provided you information, it made it to your lobbying group’s advertisements. I do not intend to do that again.
On Oct 24, 2016, at 6:54 PM, Phil Shawe Thanks Bob. I am quite sure that I consciously approved no such thing. I feel that vast sums of company’s money are being spent by you and your agents and their agents – on your own bills – with your own approval – with no meaningful disinterested or non conflicted review. This is In violation of the most basic accounting principles. How can this be rectified? No one should have a blank check just to pay themselves whatever they want — whenever they want — out of the company coffers — completely unreviewed — and completely unchecked. This is how you/Skadden and Joel/A&M pay each other now — but because Joel is beholden to you, the system is flawed. Example: If you/Skadden had a 5,000 line item, but erred and typed 50,000 — How would this error ever get caught? Your self-imposed and self-regulated system: Lump sum billing with no detail + no meaning review + “approve your own bills with yourself and your own agents that you reciprocal approve theirs with no review” cannot be proper procedure under Custodian/Receiver guidelines or accounting standards. Even as a state actor and arm of the court — this unlimited and unchecked ability to spend the company’s money just does not seem right, I am open to solutions: but there should be “segregation of duties” in accounting. I am not saying that you and A&M are scratching each other’s backs on bill approval and payment — but as of now, you could — and that should not be permitted to happen at the system level — and with change you force through — our accounting system becomes more and more contorted so that your and your agents are in position to approve each other’s bills with no meaningful review whatsoever. Again, this cannot right — and the system should include approved other than your own – for your own bills. Best, Phil On Oct 25, 2016, at 6:08 AM, Pincus, Robert B You approved the signing policy at the last Board meeting. A copy of which, marked from the last approved policy, is attached hereto. If you have a list of questions you would like to have answered please call me to discuss. Robert B. Pincus Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square | P.O. Box 636 | Wilmington | Delaware 19899-0636 T: 302.651.3090 F: 302.434.3090 | M: 302.562.5232 [email protected] From: Phil Shawe [mailto:[email protected]] Sent: Monday, October 24, 2016 5:46 PM To: Pincus, Robert B (WIL) Cc: [email protected]; [email protected]; Marty Russo Subject: Re: Grant Thornton Progress Billings Bob, Are you trying to cut my approval out of here too? Your and agent’s fees are extravagant, and you are basically writing your own checks from the company. I object to your and your agents unchecked bills. Please provide full itemized bills on the future. These should be checked like any receiver. Is it true you unilaterally raised your hourly rate to TransPefect to $1425 without seeking the courts permission? …or notifying me or the Board? And who is the check and balance on Skadden’s bills? …or do you just bill whatever you want with no meaningful review whatsoever. Do you deem this appropriate? Please answer. I have a list of unanswered questions from you that is mounting. Please kindly review my previous and provide answers. Also please stop continually referring to my concern over potential improprieties by others — or by you and your agents as “bullshit” or other profane language. Such language is not necessary or constructive. Thank you, Phil On Oct 25, 2016, at 5:27 AM, Pincus, Robert B Joel-please provide Sylvia with the payment approval matrix that was approved at the last Board meeting. Email approvals of two of three Board members are needed for non recurring or court appointed professional services, subject to certain exceptions. The GT payment is approved. Please process accordingly. Robert B. Pincus Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square | P.O. Box 636 | Wilmington Delaware | 19899-0636 T: 302.651.3090 F: 302.434.3090 | M: 302.562.5232 From: Silvia Cartagena [mailto:[email protected]] Sent: Monday, October 24, 2016 5:20 PM To: Mostrom, Joel Cc: Steve Tondera; Pincus, Robert B (WIL); Liz Elting; Phil Shawe Subject: RE: Grant Thorton Progress Billings Good Afternoon Joel,
Grant Thornton LLP (GRANO006) invoice #’s 953078650 and 953085886 along with Bob’s and Liz’s approvals have been received and will be processed once Phil’s approval is received as well. Best Regards, Silvia Cartagena Silvia Cartagena | Accounts Payable Manager
TransPerfect
From: Mostrom, Joel [mailto:[email protected]]
Sent: Monday, October 24, 2016 4:49 PM
To: Silvia Cartagena
Cc: Steve Tondera; Pincus, Robert B; Liz Elting; Phil Shawe; Mostrom, Joel
Subject: FW: Grant Thorton Progress Billings
Silvia
Attached are Grant Thornton’s progress invoices #5 and 6 for processing. Also attached are email approvals from the Board.
Joel Mostrom
Mobile +1 917 294 0224
From: Mostrom, Joel
Sent: Wednesday, October 19, 2016 8:34 AM
To: Pincus, Robert B; Liz Elting; Phil Shawe
([email protected]) Cc: Steve Tondera; Mostrom, Joel
Subject: Grant Thorton Progress Billings
Bob, Phil and Liz
Attached are Grant Thornton’s progress bills #5 and 6. Also included is a recap of fees incurred by individual on a cumulative basis. To date fees total approximately $1.1M.
Once you approve the attached invoices we’ll forward to accounts payable for processing.
Please let me know if you have any questions.
Thank
Joel Mostrom Senior Director Alvarez & Marsal North America LLC 3424 Peachtree Road NE Suite 1500 Atlanta Georgia 30326 Direct 404 720-5225 Mobile 917 294 0224
[email protected] www.alvarezandmarsal.com
From: “Pincus, Robert B”
Date: November 2, 2016 at 3:39:24 AM PDT To: Phil Shawe
Subject: Re: Grant Thornton Progress Billings
Phil– your late night ramblings are ridiculous. If you have real concerns about these issues, we should discuss in a rational manner or you should bring these allegations to the Chancellor. You lawyers certainly know how to find the Court house. No one should have to put up with your baseless allegations.
On Nov 2, 2016, at 1:16 AM, Phil Shawe
Joel
These are my personal views. I was just at the Ops party tonight…
Multiple people in the department have accused you of intimidation — and people have specifically said to me that you have said things like “The Board Says XXXX – So you have to [write the check] right now – No need to tell Phil/Liz – Just do it” My personal view is… you are often misrepresenting these requests as “Board” actions — as this is often either just “you” — or perhaps Bob and Liz approving something by email — which obviously, is not an official Board action. A Board Action requires proper notice, a meeting, a debate, and a vote. In those cases, yes, you’d then be telling the truth.
I tell you this more to coach you for your own internal credibility at TPT than for any other reason — as people know when you are hiding behind “The Board” or “The Court” in the situation, and they see through it. You are better off just telling the truth and taking responsibility versus blaming a nebulous entity with our culture and our employees. This advice can be taken at your option, but I sincerely believe it will help you with the TPT staff.
I don’t know if we need a full-fledged investigation (I leave that to Eli), as much as a change in behavior — but multiple people have complained to me you have intimidated them into actions they were not comfortable with, or would have liked to have more internal control checks done before proceeding. Many were related to spending habits. Many people also feel there are no real checks on much of the court-imposed billing because you all approve your own bills — they feel you (A&M, and Connor) are conflicted in, for example, approving your own hours. I have heard accounting people say Connor, for example, has billed many times the hours that the work listed should take. Who holds them accountable?
So you are the one actually creating stress and angst among the staff in two ways: 1) intimidation; and 2) in not having a system that provides a meaningful check over the court-ordered bills — In the current system you are running, no one is truly providing review of court-mandated expenses with a watchful eye: Skadden, Connor, A&M, and GT hours. What results? Two bad things: It’s a feeding frenzy of billing for a profitable company that was functioning just fine before you arrived — well above $10 million in the past year (an enormous number, which it will be difficult or impossible for TransPerfect to recover even if successful on appeal); and 2) people don’t respect the fact that these bills are so enormous, and that there’s no real check on them, so they don’t feel good about processing them. This is truly what gives good accounting/ops people stress and angst.
The suggestion that “The Court” is reviewing bills, to ensure they actually match the work that was actually done, is not accurate; as we all know, they are approved by email or motion – often in 1 day or 10 seconds. One thing we might want to explore is a having an internal control system that truly keeps court-mandated expenses in check, as we have with all other expenses.
Best,
Phil
Phil Shawe Co-CEO Trans Perfect
3 Park Avenue 39th Floor New York, NY 10016
t +1 212.689.1616
www.transperfect.com
TransPerfect is ISO 9001:2008 and EN 15038:2006 certified.
From: Mostrom, Joel [[email protected]]
Sent: Thursday, October 27, 2016 2:43 PM
To: Phil Shawe Cc: Pincus, Robert B; Liz Elting; Mostrom, Joel; Hershan, Robert
Subject: Re: Grant Thornton Progress Billings
Phil:
I am writing to respond to a series of emails over the recent days that you sent to me, cc’ing many others, alleging your concerns involving my actions as to several matters, including intimidation, billing approvals, check payments and messaging of Board decisions.
Intimidation It has never been my intent to intimidate anyone in Finance/Accounting in any manner, including as you suggest to cause a lack of review or questioning of bills presented for payment. If you have specific examples of this type of conduct and/or employee complaints, I ask that you provide them to me, the Board and/or HR so that they can be managed appropriately. It has never been my intent to do anything other than execute on my mandate consistent with directions of the Board and the orders of the Court. Nevertheless, in an abundance of caution, this matter has been referred to HR (Eli) and I am hopeful that HR will investigate your allegations to ensure that no one in the finance department feels they are being intimidated by my actions.
Please note that copying finance personnel on these types of emails, in my opinion, works to create additional stress and angst among these employees and their colleagues in an already challenging environment and can have a detrimental effect on their job function. Note, as you are aware, in my role I signs checks only under Board approved rules and governance; and related check requests are approved by appropriate individuals at TP (or, in limited circumstances, by the Board or Bob as Custodian) before the check is signed.
Non-Recurring Expenses You state that I suggested in some manner that if TP is overbilled for nonrecurring expenses this is an acceptable philosophy and approach. This is completely false, has never been suggested by me or, to my knowledge, anyone else serving the Company, and is an absolute distortion of discussions related to accounting treatment. I have discussed with the Board when considering accounting treatment and matters related to the sale process that nonrecurring expenditures are treated separately from ongoing, regular operating expenses for financial reporting purposes; indeed, they are shown as such under prevailing accounting rules. However, I have never taken or expressed the position that improper or invalid expenses (nonrecurring or otherwise) should ever be acceptable to TP or me.
A&M’s and Skadden Invoices You suggest that A&M and Skadden approve each other’s invoices which presents a “blank check” to pay each other. However, you are well aware that this is not true. Neither me nor anyone from A&M has the power to approve A&M’s or Skadden’s invoices on behalf of the Company. These are all approved at the Board or Court level based on, as I understand, the governance procedures in place that neither I nor anyone at A&M has any influence on setting. In addition, I never sign checks payable to A&M. Should you have specific concerns with the accuracy of A&M’s bills for fees and expenses I encourage you to raise those issues promptly so that we can be responsive and continue to ensure that TP is billed accurately and appropriately by A&M. However, blanket assertions that you don’t have time to review those bills and/or that generally you are not happy with the governance controls in place regarding the payment of our bills is an issue that is best handled at the Board and/or Court level.
Board Approval Communications You also asked me to disclose to TP personnel individual Board member names when delivering a determination of the Board to personnel responsible for carrying out Board decisions. It is not my role to disclose confidential Board discussions and decisions and I will not do that unless the Board directs me to. If you desire to have your vote known among TP personnel, I have no authority to stop you, however I’d caution that such communications might lend to further instability and discomfort within the finance department, a result that I would hope we are all aligned to avoid.
The above is simply an attempt to correct some of the misstatements and respond to certain of the disparaging accusations in your recent email communications. I am hopeful that we can avoid further distraction from my service at the pleasure of the Board of Directors.
Please do not hesitate to contact me to discuss.
Regards,
Joel
Joel Mostrom Senior Director Alvarez & Marsal North America LLC 3424 Peachtree Road NE Suite 1500 Atlanta Georgia 30326 Direct 404 720-5225 Mobile 917 294 0224
[email protected] www.alvarezandmarsal.com
This message is intended only for the use of the addressee(s) and may contain information that is PRIVILEGED and CONFIDENTIAL. If you are not the intended recipient(s), you are hereby notified that any dissemination of this communication is strictly prohibited. If you have received this communication in error, please erase all copies of the message and its attachments and notify us immediately.
From: “Pincus, Robert B”
Phil–if you really suspect fraud and waste, I suggest that you report it to the Chancellor immediately. If you are just throwing out those words out of ignorance or vindictiveness, I suggest you stop.
On Aug 2, 2017, at 2:20 PM, Phil Shawe
Again, I suspect both Fraud and Waste, it’s my duty as Board Member to report my suspicions — and I’m doing as a fiduciary to the Company.
Will you allow an audit?
On Aug 2, 2017, at 2:13 PM, Pincus, Robert B
Phil-those are not my words or substance. I told you my bills are subject to approval of the Court. The Court Order was attached and my letter to the Court described the services rendered. If you have a problem with that, you should bring it to the Chancellor.
Robert B. Pincus Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square | P.O. Box 636 | Wilmington | Delaware | 19899-0636 T: 302.651.3090 F: 302.434.3090 | M: 302.562.5232 [email protected]
From: Phil Shawe [mailto:[email protected]] Sent: Wednesday, August 02, 2017 1:57 PM To: Pincus, Robert B (WIL) Cc: Joel Mostrom (Alvarez & Marsal); Liz Elting; Brown, Patricia E (NYC); Donnelly, Carol A (WIL); Esther Escapa; Martin Russo; [email protected] Subject: [Ext] Re: Skadden statement
Joel and Bob,
I demand an audit of these bills. How many hours did everyone work – and on what?
In his words or substance “I [Pincus] can bill an unlimited amount, and there’s no way for you (Shawe) to question or challenge it.” This may the case, but it should be in the minutes that my objection is noted.
Best, Phil
On Aug 2, 2017, at 1:25 PM, Pincus, Robert B
Joel—Attached is our statement for services rendered during the period June 25th through July 30th and the Court Order approving it. The professional fees of $25,899.48 included as expenses, relate to the services of Williams & Connolly, which is representing me in the District Court litigation brought by the Shawes. Please let me know if you have any questions.
Best, Bob
Robert B. Pincus Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square | P.O. Box 636 | Wilmington Delaware | 19899-0636 T: 302.651.3090 | F: 302.434.3090 M: 302.562.5232 [email protected]
From: “Pincus, Robert B”
Date: September 12, 2017 at 10:14:04 AM EDT
To: ‘Phil Shawe’Subject: RE: [Ext] Re: Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (SKAD0001) – 1679568
Phil,
As you know, under the terms of the Sale Order, the Court approves my firm’s bills, not you. Thus, your approval is not required and is not being sought.
That said, please note that I take my responsibilities as Custodian very seriously, including with respect to billing. As you know, in submitting my firm’s bills, I have proceeded in the same manner (in accordance with the Sale Order) for over two years, and the Court has never registered any dissatisfaction with the bills, the process by which they are submitted, or the monthly letters that I send to the Court in connection with the sale process to which you have access), generally describing the kinds of matters in which I and my colleagues are engaged.
There are sound reasons why the Court approves my bills and not you. You are a party litigant in the Delaware proceedings who vehemently opposes the sale and who also is adverse to me (and/or the State of Delaware) in several legal actions concerning the sale. Further, you are a bidder in the sale process, sitting across the table from me and TransPerfect, so to speak, which gives rise to certain unavoidable conflicts on your part. In these circumstances, it is particularly inappropriate for you to be seeking my detailed invoices and the confidential information reflected therein and/or the attorney work product reflected thereby.
As for the recent increase in monthly bills, as you know, we are now in the midst of an intense period in the sale process, with daily engagement with bidders, their advisors and related matters. Moreover, during this time, we have confronted an increase in litigation activity brought by you and your lieutenants, as well as a growing lack of cooperation, including in connection with Wordfast and other wrongful attempts to deter, delay and confuse the sale process. Our increased hours and bills are largely a result of this increased litigation activity and lack of cooperation.
In short, I believe that the allegations in your email are baseless and are part of a larger, coordinated effort to undermine the sale process. Nevertheless, as I have indicated in the past, in accordance with the Sale Order, you are free to address whatever concerns you might have with the Court of Chancery.
Bob
Robert B. Pincus Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square | P.O. Box 636 | Wilmington Delaware | 19899-0636 T: 302.651.3090 F: 302.434.3090 | M: 302.562.5232
[email protected]From: Phil Shawe [mailto:[email protected]] Sent: Monday, September 11, 2017 9:33 AM To: Pincus, Robert B (WIL); Joel Mostrom (Alvarez & Marsal) Cc: [email protected]; [email protected]; [email protected]; keith@fleischmanlawfirm .com Subject: [Ext] Re: Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (SKADO001) – 1679568
Removing Silvia, Chris, and Steve…
Bob and Joel,
Consistent with my Director duties, I must object to this payment without transparency and itemized bills — receiver bills are ordered by the court and should be public and should face meaningful review (not just a rubber stamp from the court) — And they certainly should be made available for reasonableness review, to me as a Director, Co-CEO, and 49% owner of the parent company — and a 49% beneficial owner of this money itself.
Billing nearly $500,000 a month, for the past two months — even at the rate $1425 per hour — should be reviewed — my view is that it is virtually mathematically impossible that all these hours were actually worked by Bob or anyone else at Skadden. To be clear, I suspect Skadden of padding of hours, billing fraud, and corporate waste; and am respectively request transparency, and independent an third-party investigation all Skadden’s lump sum billing practices starting with the first Mediator and Custodian invoices.
Again, my personal view is: it is mathematically impossible for Bob and Skadden to have provided approximately $1 million in services over the past 2 months. This is vastly more than Morris James, and Now-Vice Chancellor Joseph Slights charged for me for the same period “to conduct a trial”
Additionally, my understanding is Ms. Voss recently came to New York, and intimidated several TPI’s New York employees into meeting with her alone, knowing full well they were represented by counsel – – And, she did not uniformly provide the appropriate lawyer-layman warnings, as required by law. I personally do not believe TransPerfect should be charged a penny for Ms. Voss’ unethical and/or illegal behavior.
Bob, are Ms. Voss’ interrogations of TransPerfect employees part of your bill?
If my approval is desired, please provide back up. There is no reason why Skadden’s bills should not be equally transparent to that bills of Former-Chancellor William Chandler. Please use the former Chancellor’s recent bills as a guide for appropriate and ethical fee disclosures — and re-submit Skadden’s bill with enough transparency to evaluate their accuracy. If this cannot be provided, my view is that any objective observer must conclude that illicit activity is taking place with respect to Skadden fee and TransPerfect is being vastly over-billed.
Thank you,
Phil
On Sep 11, 2017, at 5:42 AM, Silvia Cartagena
Hi Joel, Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (SKAD0001) invoice # 1679568 along with Court Order approving payment has been received for processing.
Thanks
Best Regards,
Silvia Cartagena
TransPerfect t+212 689-5555 x 1382 |f +646 607-1559
From: Mostrom, Joel [mailto:[email protected]] Sent: Saturday, September 09, 2017 8:51 AM To: Silvia Cartagena Cc: Liz Elting; Phil Shawe; Pincus, Robert B; Christopher Boerum; Steve Tondera; Joel Mostrom (Alvarez & Marsal) Subject: FW: Skadden statement
ATTENTION EXTERNAL E-MAIL – Message was sent from external sender. Be careful of attachments and links from unknown/unsolicited users, especially if this claims to be from someone internally.
Silvia
Attached is the Custodians invoice for services rendered for August 2017 and the Court Order approving payment.
I have also copied Liz and Phil for notice as required by the Board’s payment policy.
Thanks
Joel Mostrom Mobile +1 917 294 0224
From: Pincus, Robert B [mailto:[email protected]] Sent: Thursday, September 07, 2017 5:27 PM To: Mostrom, Joel
Donnelly, Carol A
Joel–Attached is our statement for services rendered during the period July 31st through August 28th and the Court Order approving it. The professional fees of $1,608.00 included as expenses, relate to the services of Williams & Connolly, which is representing me in the District Court litigation brought by the Shawes. Please let me know if you have any questions.
Robert B. Pincus Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square | P.O. Box 636 | Wilmington | Delaware | 19899-0636
T: 302.651.3090 | F: 302.434.3090 | M: 302.562.5232 [email protected]
From: Pincus, Robert B [[email protected]] Sent: Monday, October 09, 2017 7:52 PM
To: Phil Shawe Cc: Voss, Jennifer C; David Goldstein; [email protected]; Joel Mostrom (Alvarez & Marsal) Subject: Fwd: [Ext] RE: Skadden statementPhil – As I’ve indicated in the past, I will not respond to your angry emails, other than to say that, as Custodian, I take my billing responsibilities very seriously and your accusations — including about billings, purported statements made at board meetings, and “Elting-created initiatives” –, as you well know are false. Bob
From: Phil Shawe [mailto: [email protected]]
Sent: Monday, October 09, 2017 5:46 PM To: Pincus, Robert B (WIL); Joel Mostrom (Alvarez & Marsal) Cc: Brown, Patricia E (NYC); Donnelly, Carol A (WIL); Voss, Jennifer C (WIL); Adam Mimeles; Steve Tondera; Roy Trujillo; [email protected]; [email protected]; [email protected]; keith @fleischmanlawfirm.com; [email protected]; [email protected]; [email protected]; [email protected] Subject: [Ext] RE: Skadden statementBob,
I would like to see the Court Order specifically addressing the million dollar bill ($998,615).
Why is the file name “Arbitration Bill” — I assume this is for some “arbitration” — And therefore a mistake, and perhaps the whole bill is a mistake; as such, I demand scrutiny by In-House counsel Adam Mimeles – – and all Shareholders and Directors.
You and Skadden stand accused of billing fraud, padding hours, billing for work not actually done, and front-loading partner time expense (vs. less expensive associates) — by three C-Level TransPerfect executives independently — who are experienced executives with over 50 years of combined TransPerfect experience — and, that was at the $500,000 level. So what do you do? …you double your bill, and continue to provide no transparency. Is this retaliation for raising legitimate questions? The entire accounting staff, and the general management team company-wide, is horrified by your fee gouging.
I know, from the beginning, you’ve mocked me in Board Meetings, and said I have “no chance” of fairly stopping you from looting TransPerfect, or even providing itemized bills, based on your relationship with the Chancellor, and that the Chancellor will blindly sign for whatever money Skadden asks for, so “take it up with him” — and that you can ask for as much as you want — and that I shouldn’t bother challenging. While, you have improperly succeeded in deterring me thus far, this has now moved from the egregious to the completely obscene.
To be clear: I am challenging your bills to-date in general, your rate, and this outrageous bill specifically. Please order the itemized version shown to our in-house counsel, shareholders and directors (we are paying them). If you are aren’t engaged in wrong-doing, you should have nothing to hide. And, just because you are close with the Chancellor, it doesn’t give you a license to steal.
And, if it exists, kindly show me a specific court order related to this “arbitration” bill, so I may see it. I see nothing that ties this court order to this “Arbitration Bill” — and nothing that says the Chancellor even knows it’s $998,615.
Please answer what TransPerfect is in “Arbitration” about, and with whom, asap?
Thank you, Phil
p.s. Joel has admitted to me, and our staff, many many times that your team (you, he, and Rob) spend nearly all your time on Elting-created initiatives. So please don’t start to make accusations to the contrary.
p.p.s. Shawe legal team, please do not reply to this company email address.
Phil Shawe Co-CEO TransPerfect
3 Park Avenue 39th Floor New York, NY 10016
t +1 212.689.1616
www.transperfect.com
TransPerfect is ISO 9001:2008 and EN 15038:2006 certified.
From: Pincus, Robert B [[email protected]]
Sent: Monday, October 09, 2017 4:53 PM To: Joel Mostrom (Alvarez & Marsal) Cc: Liz Elting; Phil Shawe; Brown, Patricia E; Donnelly, Carol A Subject: Skadden statementJoel—Attached is our statement for services rendered during the period August 29th through September 27th and the Court Order approving it. The professional fees of $51,360 included in the expenses, relate to the services of Williams & Connolly and other law firms that are representing me in various litigations brought by the Shawe’s. Please let me know if you have any questions.
Robert B. Pincus Skadden, Arps, Slate, Meagher & Flom LLP One Rodney Square | P.O. Box 636 | Wilmington Delaware | 19899-0636
T: 302.651.3090 F: 302.434.3090 | M: 302.562.5232 [email protected]OPINION
Dear friends,
TransPerfect is going after law firm Skadden Arps and Chancery Court-appointed custodian Robert Pincus, asserting they should be held in contempt of court and no longer be allowed to submit late fee requests. I wonder what has taken so long?! These jokers have been able to collect almost $14 million in fees and continue to put their hand out each month for more, even after the case has been closed for nearly 2 years.
Lawyers for TransPerfect are (finally) going after Skadden Arps and Pincus, saying they should be “held in contempt and precluded from submitting untimely fee petitions. The misconduct is a direct affront to the integrity of the judicial system… and risks undermining public confidence in the Court and its appointees.”
My opinion is plain and simple, folks, it’s a terrible injustice and a bad look for the court. It seems as if Skadden sends the bills and Andre Bouchard is the enforcer. Hopefully, with this new hearing, TransPerfect prevails.
Advocate group “Citizens for a Pro-Business Delaware” is weighing in big time. They have vowed the support of their 5,000+ members-strong group, behind TransPerfect’s 6,000+ employees. Plus the Citizen’s group has its own reforms, designed to bring transparency to the Chancery Court.
Let’s rally behind these good people. They need a win, otherwise, other Delaware companies, CEOs, and many other fine people of Delaware will continue to be at the mercy of what I see as a suspicious and improper Chancellor Bouchard Chancery Court/Robert Pincus/Skadden Arps connection.
Let me know what you think, folks. I’m extremely annoyed at the incessant IMPROPRIETIES in Delaware.
Sincerely yours,
Judson Bennett-Coastal Network
Read the Story on PRNewsWireAs Skadden Custodian is “in flagrant violation of multiple Court orders,” According to TransPerfect Motion, Citizens for a Pro-Business Delaware Slams Chancery for Lack of Transparency
NEWS PROVIDED BY
Citizens for a Pro-Business Delaware
Feb 07, 2020, 11:23 ET
WILMINGTON, Del., Feb. 7, 2020 /PRNewswire/ — Today, lawyers for TransPerfect Global, Inc. filed a motion in the Delaware Court of Chancery for an order to show cause why the law firm of Skadden Arps – and the firm’s court-appointed custodian of TransPerfect Global, Inc., Robert. B. Pincus – should be held in contempt and precluded from submitting untimely fee petitions. The motion follows weeks of criticism of the Court’s double standard and lack of transparency by the grassroots organization, Citizens for a Pro-Business Delaware.
Per the new motion filed by counsel for TransPerfect Global, Inc. and CEO Phil Shawe today, “the misconduct is a direct affront to the integrity of the judicial system. Among other bad faith acts, they are intentionally delaying the submission of their monthly fee petitions, which are explicitly required by this Courts orders. If not addressed, the Custodian and Skadden’s escalating pattern of abuse risks undermining public confidence in the Court and its appointees. Without a finding of contempt and meaningful sanctions, the Custodian and Skadden will continue to escalate their violations of Court orders in order to obstruct any review or public scrutiny of their billing practices as State actors.”
The motion comes after a similar one filed last week revealed the law firm of Skadden Arps has billed the translation services company for upwards of $14 million in undisclosed legal fees since being appointed the company’s custodian, recently filed documents also showed both sides of the TransPerfect dispute agree the legal fees should be explained.
Last week, per a letter filed with the court on behalf of TransPerfect CEO Phil Shawe, lawyers from Potter Anderson, as counsel for Elizabeth Elting, “requested that we promptly send them unredacted copies of recently filed documents that had not been served on them.” The letter continues, “we sympathize with Ms. Elting’s plight and agree that as both a party and a payor of Skadden’s heretofore unmonitored bills she has an interest in the matter and should have free access to the contents. As Mr. Shawe has pointed out to the Court, billing information in fee requests is not confidential under Delaware law. …That is, when court-ordered fees are sought, particularly by a court-appointed officer, information such as hourly billing rates, the number of hours billed on a given task, and the total hours billed in a litigation is not confidential competitively sensitive information. Similarly, the names of the attorneys performing the work and a brief summary of the work performed is not confidential proprietary information. These documents should be public as in every other case.”
Over two years after the TransPerfect case was settled in 2015, the custodian in the case, Skadden’s Robert Pincus, has continued to bill the company every month for undisclosed services, including his own $1,475 an hour fee. According to TransPerfect’s motion, his responsibilities remain unclear, and any efforts to ascertain the substance of his work on behalf of TransPerfect have been met with silence. The Chancery Court has kept all invoices and description of services under seal – allegedly to protect the sale process, which ended over two years ago. The recent developments in the TransPerfect case highlight the need for new transparency measures in Delaware’s secretive and beleaguered Chancery Court.
Said Chris Coffey, Citizens for a Pro-Business Delaware’s Campaign Manager, “From day one of being appointed TransPerfect’s custodian, Robert Pincus and Skadden Arps have been taking advantage of the company and its thousands of employees by billing them millions of dollars without saying why or what for. These Skaddenomics are so shady, the firm deserves to be held in contempt, otherwise, what is holding firms like this accountable? It’s certainly not Chancery Court Chancellor Bouchard, who has been violating his own court’s rules and effectively funneling over $14 million dollars to friends at his old law firm.
“When both sides of a legal dispute stand in agreement, and the court stands by its secretive process protecting no one but the law firm they appointed, the system is broken. We once again call on the Delaware legislature to advance the legislation before them that would create a fairer and more transparent Chancery Court by requiring all custodian’s fees to be disclosed. It’s the very least they can if we are to continue allowing judges to give their old buddy’s handouts at the expense of Delaware taxpayers.”
Among CPBD’s reforms is legislation, introduced to the Delaware State Legislature, that would bring much-need transparency to the Chancery Court, requiring appointed custodians to itemize and publicly disclose a complete accounting of the costs they’ve passed on to the companies under their control so that the public, and the companies themselves, know how their money is being spent. The legislation follows Delaware Chancery Court Chancellor Bouchard’s abuse of court rules, as he appointed his last employer, Skadden Arps, and ruled that TransPerfect – which was incorporated in Delaware and has nearly 4,000 employees globally – should be sold as a result of an internal dispute between the company’s ownership. Since, Skadden Arps has received a significant amount of the $250 million that was spent on the case.
As Delaware dropped 10 spots to number 11 according to the Chamber of Commerce in its judicial rankings last year, CPBD announced a new platform to dramatically improve ethics, transparency, and accountability in the State’s Government and Chancery Court.
Dear friends,
As you all know I am a Republican partisan who supports President Donald Trump. I do so because his plan, his dedicated platform is absolutely working. There is no doubt that Trump has a past that is less than perfect. Ruthless business reputation, financial difficulties, womanizer, tough, and sometimes unreasonable are just a few of the stories I have heard. Well folks, there are not any US Presidents, including John F. Kennedy and William J. Clinton in our history who have not only been controversial, but in regard to womanizing, especially while in office, make “The Donald” look like a choir boy.
Folks, I live in Palm Beach. I have met Trump several times. He has always been gracious and charming. I have a good female friend who used to run Mar-a-Lago for Trump. This lady is gorgeous and was and is single. She told me Trump was always professional and a gentleman-100% during the 15 years she worked for him. The bottom line is Trump is the real deal. He has become a billionaire and he surely has done it, although controversial, well within the law. Trump works for free by the way and gives away his salary, as do his daughter Ivanka and son-in-law Jared. Did Obama give up his salary, did Clinton, did Bush?
Let’s talk about the Democrat controlled House of Representatives who have done nothing for 3 years except try to Impeach Donald Trump. Led by Speaker Nancy Pelosi, who represents San Francisco, which is a disgrace with a grotesque homeless population. Joined by Representative Schiff (also a California hypocrite) and that little troll Representative Nadler who all conspired with a coached and compromised Whistle-blower to falsely accuse President Trump of impeachable offenses. The bottom line is that Trump was not given the proper DUE PROCESS during the House Impeachment. He was not given the opportunity to have his lawyers cross examine the witnesses. I watched every minute of it and folks that was a ridiculous Kangaroo Court if I ever saw one ! The charges were Bogus in their entirety. The President sets foreign policy, not diplomats, nor career government workers. Trump had every right to investigate the Bidens and any perceived corruption. As to called witnesses that were part of his Cabinet, Trump had the right to exercise his executive privilege. The House could have gone to Court, but they chose not to!
The Senate Trial was completely legitimate and yes, every single witness that appeared before the House was video tapped and their testimony was presented to the entire body along with Schiff’s incessant and insipid diatribes. THERE WERE WITNESSES. The Senate voted not to call ADDITIONAL WItnesses ! That was the House’s job and they failed to do it. Furthermore the constitution clearly showed that the charges against Trump did not meet the standard for impeachment. President Donald Trump WAS ACQUITTED AND RIGHTFULLY SO !
I would like to address the top 4 Democrat candidates who are running for President against Donald Trump. I have never seen in my life time a weaker and frankly more dangerous bunch of candidates for America’s future ! Let us look at Joe Biden. This guy is a crook who clearly blackmailed and extorted the Ukranian government by forcing them to fire the prosecutor who was investigating his son Hunter Biden. “Quid Pro Quo”, severe influence peddling, and worse ! A senile, female hair-sniffing has-been who should never be our President! Bernie Sanders would take away your freedoms. Socialism is a proven failed system and if this guy gets elected, that will be the end of any future prosperity in America. Elizabeth Warren (a phony Cherokee Indian) who cheated her way into an Ivy League school. The woman is a complete wacko! Finally Pete Buttigieg, indeed a candidate whose father was an avowed Marxist ! Can you see his man-spouse entertaining a middle eastern head of state in the White House? Folks it is ludicrous that these people are even considered.
Donald Trump is the best President I have seen in my lifetime! It will be the end of the American dream if he is not reelected. Prosperity is upon us, cherish it, protect it. Mediocrity is unacceptable! VOTE For TRUMP IN NOVEMBER and remove the insidious, useless Democrats from office!
Respectfully Submitted,
JUDSON Bennett-Coastal Network
OPINION
Dear friends,
Good morning. We have breaking news this morning! TransPerfect and CEO Philip Shawe are going on offense, asking Delaware Chancery Court Chancellor Andre Bouchard to sanction Skadden Arps and court-appointed custodian Robert Pincus over a billing dispute that has gone on for two years after the TransPerfect case ended.
See the Law360 story below for all of the details. What’s really happening here, folks, is Bouchard is cleverly being put between a rock and a hard place. He’s being asked to penalize his former law firm and the man, also from that same firm, who he appointed to the TransPerfect case. As I see it, it’s put up or shut up time. Will Bouchard do the right thing? In my opinion, this is the right move for TransPerfect and Bouchard needs to end the billing shenanigans, which have gone on far too long.
TransPerfect and Shawe are saying Skadden and Pincus have gone way too far in concealing information about invoices and that Skadden and Pincus are engaged in an ongoing attempt to hide bills from closer scrutiny, the Law360 story reports.
Bouchard has sealed the record beyond what is reasonable, in my opinion. We should know what’s happening in this case. There’s no need for any secrecy here, folks! I think it sets a dangerous precedent in Delaware.
I’ll keep you updated. The plot has thickened. Get out your popcorn, folks. Delaware just got a bit more interesting. Let me know your thoughts.
Respectfully yours,
Judson Bennett-Coastal Network
Read the full story belowTransPerfect Targets Bouchard In Push To Sanction Skadden
By Rose Krebs
Law360 (February 7, 2020, 9:00 PM EST) — Global translation company TransPerfect Global Inc. and CEO Philip R. Shawe continued to hurl criticisms of Delaware Chancellor Andre G. Bouchard on Friday, this time calling into question whether the jurist will fairly consider their bid for sanctions against his former firm Skadden and a court-appointed custodian over billing disputes.
A day after asking Chancellor Bouchard to issue a contempt order and sanctions against Skadden Arps Slate Meagher & Flom LLP and custodian Robert B. Pincus, a former Skadden partner, in an ongoing dispute over billing, TransPerfect and Shawe cast doubt on the chancellor’s impartiality in considering the request.
“If the playing field was level, Chancellor Bouchard would employ his often cited goose-gander rule and hold the custodian in contempt with a threat of further sanction if he doesn’t comply in the future,” Shawe and TransPerfect attorney Martin P. Russo of Russo PLLC told Law360 on Friday. “But this is Delaware, where Skadden has immense power and unusual sway with the Chancellor, so I expect that we will see an irrational and inconsistent denial of the motion.”
The accusation is just the latest in TransPerfect and Shawe’s escalating criticism of the chancellor in the past few years as they continue to assert they have been overbilled and that Skadden and the custodian are engaged in an ongoing attempt to hide bills from closer scrutiny.
The motion for contempt and sanctions filed Thursday contended that Pincus and Skadden, who is his counsel, have intentionally failed “to file mandatory monthly applications for court approval of fees and expenses” as required by prior court orders.
TransPerfect and Shawe asserted that Pincus and Skadden are “intentionally withholding the required court ordered monthly fee petitions solely for the purpose of obtaining maximum protection of their billing practices (as court-appointed actors) from any scrutiny.”
The motion said bills were not submitted for November and December and, as a sanction, asks that those months’ fees and expenses be forfeited and that TransPerfect and Shawe be awarded legal fees in connection with its motion.
“If not addressed, the custodian and Skadden’s escalating pattern of abuse risks undermining public confidence in the court and its appointees,” the filing said. “Without a finding of contempt and meaningful sanctions, the custodian and Skadden will continue to escalate their violations of court orders in order to obstruct any review or public scrutiny of their billing practices as state actors.”
The billing fight has been ongoing for months now, with Chancellor Bouchard ruling in October that TransPerfect and Shawe would have to pay a $30,000-per-day contempt of court sanction if they didn’t dismiss a suit in Nevada over the custodian’s billings that was filed despite an order establishing the Chancery Court’s exclusive jurisdiction following the forced sale of the company in 2018.
The Chancery Court appointed Pincus in 2015 to serve as a custodian to oversee operations of TransPerfect and manage its sale, after its two co-founders — Shawe and Elizabeth Elting — had a falling-out and could not agree on how to proceed with various company matters, according to court documents.
In May 2018, the Delaware Supreme Court affirmed the Chancery Court’s ruling earlier that year that allowed Shawe to buy Elting’s 50% stake in the company. The lower court had also determined that Pincus’ impartiality wasn’t compromised by the threats of litigation made against him by Elting or by Shawe’s alleged interference in the sale process.
In August, TransPerfect filed the Nevada suit claiming Pincus was billing the translation company without giving the company proper notice or itemizing the work he purportedly has performed.
Pincus fired back with a request for sanctions later in August, saying that Shawe was violating a Delaware court order by bringing suit in Nevada. Shawe, Pincus claimed, has exhibited a “pernicious pattern” of violating court orders in the past and will continue his “pattern of abuse” without sanctions.
After Chancellor Bouchard hit TransPerfect and Shawe with the potential $30,000-per-day contempt fine, the Nevada suit was dropped.
“This motion is frivolous and is simply the latest in TransPerfect and Shawe’s continued efforts to deflect attention from the fact that they have been sanctioned and found in contempt for ‘willfully and intentionally’ defying court orders,” Skadden told Law360 on Friday.
TransPerfect and Shawe continue to hurl assertions that not only have Skadden and Pincus failed to adhere to monthly billing requirements, but they have gone way too far in concealing information about invoices. They have already asked the court to clarify a prior order dealing with billing confidentiality issues.
“TransPerfect has been ordered by Chancellor Bouchard to pay about $14 million to his former law firm, Skadden Arps, yet we have never been permitted to see one itemized bill for the ‘work’ they’ve allegedly performed,” Shawe asserted to Law360 on Friday. That alleged amount relates to bills paid since Pincus was appointed custodian until about mid-2019, a representative for Shawe said.
Chancellor Bouchard served as a corporate litigator for Skadden prior to 1996, when he started as managing partner of a corporate and commercial litigation firm he founded, according to the state court website. He was sworn in as chancellor in 2014.
The Chancery Court declined to comment Friday.
Shawe and TransPerfect are represented by Martin P. Russo of Russo PLLC, Jeremy D. Eicher of Eicher Law LLC, Frank E. Noyes II of Offit Kurman PA and Alan M. Dershowitz.
Pincus is represented by Jennifer C. Voss and Elisa M.C. Klein and of Skadden.
The underlying cases are In re: TransPerfect Global Inc. and Elizabeth Elting v. Philip R. Shawe, et al., case numbers 9700 and 10449, in the Court of Chancery of the State of Delaware.
–Additional reporting by Emma Cueto, Jeff Montgomery, Reenat Sinay, Kevin Penton, and Vince Sullivan. Editing by Abbie Sarfo.
Without a doubt in my mind, the Delaware Court of Chancery under the auspices of Chancellor Andre Bouchard is seemingly engaged in some very irregular activity. Chancellor Bouchard has apparently ordered and approved the billing of millions in unexplained invoices from his former business partner Robert Pincus, who was Bouchard’s appointed Custodian in the TransPerfect case.
I see this as being outrageous, especially considering the case has been closed for years. According to my sources at the company, the Custodian did little to justify his nearly $1,500 per hour fees! For the record, Bouchard, Pincus, and former Chief Justice Leo Strine all were former members of the infamous law firm of Skadden Arps, which has been sanctioned in the past by the Federal Government.
Folks there is indeed the appearance of impropriety in the Chancery Court. It appears to me that Bouchard is filling the pockets of his buddies. I am sick to death of perceived corruption not only in Ukraine but in our Delaware as well. It presents a terrible picture of what Delawareans expect in the way of justice and equity.
So what is next? I have learned that TransPerfect is now going back to Court, filing a new motion in the Court of Chancery, seeking an explanation ONCE AGAIN?? The thing that blows me away is that this apparent and incessant suspicious activity is directly in our faces.
Delaware’s once-respected Chancery Court, I believe, has lost its honor and its objectivity. I believe Bouchard is corrupt, unfair; not objective. I demand an investigation into this situation. It is clearly untenable. I believe the impeachment of Andre Bouchard is in order ASAP.
Please read the article below and send me your ideas and feedback on this horrendous inequity. Hopefully, this crazy impeachment debacle of our President will be over soon, and we the people can get back to local issues in Delaware. Thank you kindly.
Scroll down to read the article :
https://www.prnewswire.com/news-releases/court-motion-reveals-skadden-arps-has-charged-10-million-in-undisclosed-legal-fees-as-custodian-of-transperfect-while-hiding-behind-obscure-chancery-court-order-citizens-for-a-pro-business-delaware-renews-call-for-reform-300991682.html
Jan 22, 2020, 16:25 ET
WILMINGTON, Del., Jan. 22, 2020 /PRNewswire/ — Following a court motion filed in the Delaware Court of Chancery today by TransPerfect Global, Inc. revealing that the law firm of Skadden Arps has billed the translation services company for upwards of $10 million in undisclosed legal fees since being appointed the company’s custodian, Citizens for a Pro-Business Delaware (CPBD) is renewing its call for reforms to the opaque business court.
Among the much-needed reforms is legislation, introduced to the Delaware State Legislature, that would bring much-need transparency to the Chancery Court, requiring appointed custodians to itemize and publicly disclose a complete accounting of the costs they’ve passed on to the companies under their control so that the public, and the companies themselves, know how their money is being spent. The legislation follows Delaware Chancery Court Chancellor Bouchard’s abuse of court rules, as he appointed his last employer, Skadden Arps, and ruled that TransPerfect – which is incorporated in Delaware and has nearly 4,000 employees globally – should be sold as a result of an internal dispute between the company’s ownership. Since, Skadden Arps has received a significant amount of the $250 million that was spent on the case.
Said Chris Coffey, Citizens for a Pro-Business Delaware’s Campaign Manager, “The Skaddenomics that Chancellor Bouchard has enabled in his Chancery Court by violating the court’s rules to direct millions of dollars to friends at his old law firm are unacceptable, and exactly the sort of behavior that our over 5,000 members are committed to fighting. The Delaware State Legislature should take a long look at this motion and consider the legislation before them to create a fairer and more transparent Chancery Court. When you eat a meal at a restaurant, you get a receipt with a breakdown of the charges. Why shouldn’t the Chancery Court be required to do the same for companies they’re forcing to pay millions in legal fees?”
According to TransPerfect’s motion, over two years after the TransPerfect case was settled in 2015, the custodian in the case, Robert Pincus, has continued to bill the company every month for undisclosed services, including his own $1,475 an hour fee. According to TransPerfect’s motion, his responsibilities remain unclear, and any efforts to ascertain the substance of his work on behalf of TransPerfect have been met with silence. The Chancery Court has kept all invoices and description of services under seal – allegedly to protect the sale process, which ended over two years ago.
As Delaware dropped 10 spots to number 11 according to the Chamber of Commerce in its judicial rankings last year, CPBD announced a new platform to dramatically improve ethics, transparency, and accountability in the State’s Government and Chancery Court.