OPINION
Dear Friends,
I give Phil Shawe, the Founder of TransPerfect, a lot of credit for continuing to shed light and root out corruption on Delaware’s Chancery Court. He has already won his company back, so there’s nothing more for him to gain–yet he continues to educate the public.
Of course, I think he’s right that Bethany Hall-Long’s crooked capers should disqualify her from being governor, but establishment Delaware democrats want her in that role, even if she “creates receipts” to fool auditors.
See below what Shawe told to the News Journal (which I heard he was buying). Send me your feedback, folks, it’s always appreciated.
Respectfully Yours,
JUDSON Bennett–Coastal Network
Delaware’s business community can thrive when we embrace a new Delaware Way
Phil Shawe
Special to the USA TODAY Network
For the past century, Delaware has been widely recognized as the incorporation capital of America, if not the world over. This reputation was largely gained owing to its swift, tempered and predictable administration of justice through the Chancery Court — a system that has attracted countless entrepreneurs and corporations seeking a favorable business environment for growth. Drawn by these perceived advantages, I too moved my company’s corporate home to Delaware in 2007.
In theory, Delaware’s benefits should be shared equitably among all stakeholders, including owners, employees, directors and the broader business community. However, in recent years, reality has diverged significantly from this ideal. Delaware’s legal system has increasingly favored a wealthy, insular group of attorneys and firms, often referred to as the “old boys’ club.” My own experience underscores this shift. When the Chancery Court seized control of my company, I found myself powerless against the entrenched Delaware Way, which ultimately harmed my employees and disregarded broader principles of American fairness.
Today’s Delaware is governed by an unelected and omnipotent Chancery Court that no longer serves the interests of the masses — entrepreneurs, employees nor marginalized communities. Instead, it benefits a small circle of judges, law firms and lawyers who make billion-dollar decisions with no accountability. This system is fundamentally flawed and needs urgent reform.
To address these issues, I co-founded the political action committee Citizens for a New Delaware Way. Our goal is to advocate for new leadership and reforms that will restore Delaware’s business edge, rebuild public trust, and support both the middle class and less fortunate communities. The story of my business is just one example of how Delaware’s system is biased and ripe for abuse and corruption. Since 2015, my $1.2 billion company that I founded in my grad school dorm room in 1992 has been trapped in a protracted legal battle with the Chancery Court. We narrowly avoided disaster in 2016 when the court sought to force us into a merger with a major competitor, a move that enriched insiders, but jeopardized the jobs of thousands of American workers. This situation highlights the inherent dangers of Delaware’s current system and underscores the need for significant reforms.
One essential change necessary is the random assignment of cases. Currently, the chancellor personally assigns cases, which can lead to bias and self-interest, especially in a small state where the legal community is closely knit. Federal courts across the U.S. use random case assignment to avoid such issues and there is no legitimate reason Delaware should not follow suit. Additionally, Chancery Court proceedings lack transparency: there are no cameras or audio recordings, and obtaining transcripts is nearly impossible. Courts are meant to be public and transparent, yet Delaware’s system operates opaquely, with minimal oversight, making it ripe for abuse of power and potential corruption.
Reform is not limited to the judiciary; it also extends to the political realm. Recently, Bethany Hall-Long, a prominent political figure, was implicated in a scandal involving more than $200,000 in questionable payments from her campaign to her husband. An investigation revealed a note from Hall-Long instructing the “creation” of receipts for these payments. Such conduct is unacceptable for anyone managing a $6 billion state budget.
Citizens for a New Delaware Way has not yet endorsed any candidate for governor, but stands firmly against any campaign tainted by corruption and led by individuals who prioritize the political elite over the public. We are committed to exposing Hall-Long’s financial misconduct and highlighting the detrimental impact her potential administration could have on Delaware.
The time for reform is now. Delaware needs a new era of leadership grounded in integrity and fairness. We must elect a governor who rejects the status quo, is accountable to all Delawareans, and is committed to rooting out corruption. Only through such leadership can we ensure that Delaware’s future is bright and prosperous for everyone — businesses and residents alike.
The best days for Delaware are ahead but achieving them requires significant change. By establishing a New Delaware Way, we can restore our state’s reputation, support a thriving business environment and build a fairer, more equitable society. The journey toward reform starts with integrity in leadership, and it is up to us to ensure that we make the right choices for Delaware’s future.
Phil Shawe is the CEO of TransPerfect.