Please check out this victory for TransPerfect. The real story here as I see it folks is that Bouchard and his court-appointed custodian, Skadden’s Robert Pincus — his former law partner, to whom he has ordered TransPerfect to pay $14 million, without being able to see even one invoice — was using this case to bad-mouth TransPerfect and Shawe, saying they were litigious.
Pay attention carefully here lawmakers: In my opinion, this is proof once again of the Chancery Court misleading for two reasons: One, Shawe was the “Defendant” against an advisor trying to claim a false fee over a transaction that the Custodian backed out of — to line his and his friends’ pockets with a $250 million court auction. And two, because TransPerfect and Shawe won the case.
Check out the lawyer’s closing quote in the story below: “It was refreshing to litigate outside of Delaware with truly neutral jurists who make decisions based on the facts of the case.” How refreshing! What does that say about Delaware, folks?!
I wanted to keep you in the loop on how much other judges are, in my opinion, seeing Bouchard’s antics for what they are: A three-ring circus designed solely to provide payola to his pals. I say shame on Bouchard for continuing to destroy the Chancery Court’s once pristine image with every breath he takes.
TransPerfect And CEO Phil Shawe Score Major Arbitration Victory Stemming From Controversial Delaware Chancery Court Decision
March 5, 2020
NEW YORK, March 5, 2020 /PRNewswire/ — TransPerfect, the world’s largest provider of language and technology solutions for global business, and CEO Phil Shawe, today announced emerging victorious in a New York State Supreme Court–ordered arbitration related to disputed advisor fees stemming from a controversial 2015 Delaware Chancery Court decision.
The victory is a decisive step toward ending the residual litigation created by the Delaware Chancery Court’s unprecedented decision to appoint a Custodian to control a thriving and profitable company for three years and to then sell it at public auction. Shawe, TransPerfect’s original Co-Founder and CEO, ultimately prevailed in Delaware court and in the auction, raising questions about the necessity of Chancellor Andre Bouchard mandating more than $250 million in fees and expenses to achieve a result that was available and obvious since the beginning of the proceedings.
Shawe stated, “This is the first major victory against those who sought, or are still seeking, to take unfair advantage of TransPerfect stemming from the Delaware Chancery Court’s unprecedented intervention into a private, profitable, and thriving business.”
A complaint for breach of contract was filed in New York State Supreme Court by Cypress Partners, and Justice Jennifer G. Schecter issued an order compelling arbitration of the matter with JAMS Commercial Arbitration Tribunal. Cypress claimed they were entitled to a full fee for any transaction involving the TransPerfect auction process despite clear contract language to the contrary. The neutral JAMS tribunal reviewed all evidence and found no merit to the claims. Further, the arbitrators notably disregarded Chancery Court findings and dicta as having no bearing on the adjudicated matter. From start to finish, this binding arbitration battle in front of a New York panel lasted over 18 months.
Martin Russo of Russo PLLC, lead outside counsel for TransPerfect, commented, “It was refreshing to litigate outside of Delaware with truly neutral jurists who make decisions based on the facts of the case. In fair jurisdictions and forums, the rules compel triers of fact to rule on the evidence and do not allow undue influence from or favoring of friends and associates of the Court. TransPerfect has spent the last two years cleaning up the messes left behind by a series of bizarre and unpredictable rulings by Chancellor Bouchard, and we are pleased that this matter has been justly closed.”
TransPerfect is the world’s largest provider of language and technology solutions for global business. From offices in over 100 cities on six continents, TransPerfect offers a full range of services in 170+ languages to clients worldwide. More than 5,000 global organizations employ TransPerfect’s GlobalLink® Product Suite to simplify management of multilingual content. With an unparalleled commitment to quality and client service, TransPerfect is fully ISO 9001 and ISO 17100 certified. TransPerfect has global headquarters in New York, with regional headquarters in London and Hong Kong. For more information, please visit our website at www.transperfect.com.