Voss Turns in a Losing Snooze-Fest to Over 50 Zoom Hearing Attendees, as TransPerfect is Victorious with Skadden Court Filings forever “Struck From The Record”
The title says it all! Jennifer Voss’s losing argument during a Thursday afternoon Chancery Court hearing was a lifeless presentation — devoid of any passion or conviction —making me struggle to stay awake.
Without the home-court advantage of knowing the judges, Voss couldn’t argue her way out of a wet paper bag.
Finally, a glimmer of justice, temperament and even-handedness — after years of Bouchard brass and bratty corruption.
See the Law.com article below. Continue sending me your feedback, folks! It’s been pouring in lately — I appreciate and salute my loyal readership.
Judson Bennett–Coastal Network
‘Here’s Your Chance’: McCormick Says TransPerfect Won’t Face Sanctions After Paying $1.9M
Within about an hour of Chancellor Kathaleen McCormick’s admonition, New York-based TransPerfect wired that money requested by custodian and former Skadden, Arps, Slate, Meagher & Flom attorney Robert Pincus
September 30, 2021 at 10:46 AM
TransPerfect Global and CEO Phil Shawe won’t face additional contempt sanctions after wiring $1.9 million to the custodian in their long-running case in the Delaware Court of Chancery, Chancellor Kathaleen McCormick said at the end of a virtual hearing late Wednesday.
Within about an hour of the hearing ending, New York-based TransPerfect wired that money requested by custodian and former Skadden, Arps, Slate, Meagher & Flom attorney Robert Pincus in connection with previous contempt findings, which could mean the final unresolved disputes in the case will soon come to a close.
McCormick said with a payment wired through the means specified in former Chancellor Andre Bouchard’s April 30 order, she won’t consider the remedial action proposed by Pincus. Without that payment, McCormick said she would consider sanctions and the post-judgment interest that’s been proposed.
“You say you want to pay. Here’s your chance,” she said. “Pay and I will consider that issue resolved and take everything else under advisement.”
Based on the motions currently in play, everything else now includes whether the escrow agreement will be terminated and the funds in it distributed, as TransPerfect and Shawe have moved.
The $1.9 million is the largest of three sums Bouchard ordered in April to be paid by May 7. TransPerfect has maintained the money ordered by the court has been available to be paid to Pincus all along in the case’s escrow account.
At the hearing, Skadden attorney Jennifer Voss said that doesn’t qualify, noting Bouchard previously found the majority of money TransPerfect was ordered to pay couldn’t be taken from escrow and arguing the TransPerfect side should be held in contempt, as Pincus moved in June.
Arguing for Shawe, Alan Dershowitz said that’s not true under the escrow agreement.
“Nothing in this order prevents Mr. Pincus from electing to seek release of funds from the escrow. The only order directed to Mr. Shawe is to ‘promptly and fully cooperate with Mr. Pincus to achieve any amendments that are desirable’ – a relatively vague term – ‘necessary or required,'” Dershowitz said. “There is no order, nor could there be an order, for Shawe to agree or to execute an amendment with which he disagrees.”
The two other amounts ordered are now taken care of, McCormick said, finding $186,921 can be released from escrow and the other $1.1 million wired to Skadden but previously not accepted can also be released.
“We consider this a victory and are confident that Chancellor McCormick will return our escrow once payment is complete,” Shawe said after the hearing.
Shawe and TransPerfect have repeatedly fought fees petitioned for by Skadden throughout the case, a concern which Dershowitz raised Wednesday.
(This note is not in the Law360 article: Jennifer Voss tried to argue to Chancellor McCormick the “difficulties” that Pincus was having collecting his fees would damage the institution and Delaware’s courts would find it hard to find anyone to agree to serve as an appointed custodian anymore. Dershowitz’ reply below was in response to Voss’ assertion)
“I have never seen billing like this in my life, in my experience and in everything I have ever read,” Dershowitz said. “I can tell you anybody, any lawyer, no matter how wealthy or how rich, if they are given what Mr. Pincus was given, a carte blanche, an empty checkbook, allowing him to charge $20,000 for an email, there will be no problem getting people to serve in that capacity. The issue is not whether you get people to serve in that capacity; they will be standing in line to fill in the blank checks. What we have to do is finally put an end to this.”