OPINION Dear Friends, The Delaware Court of Chancery has a diversity problem, but they don’t want the public to know this. Out of the seven members of the Chancery Court, there are currently no people of color represented. It is an entirely white court. However, the official photo used on the Delaware Courts website attempts to tell a different story. This photo shows Tamika Montgomery-Reeves, a Black woman, as a Vice Chancellor. However, Montgomery-Reeves has moved on from the Chancery Court and is now a Justice on the Delaware Supreme Court. When she left the court, she was replaced by Paul A. Fioravanti, a white man who is not seen in the picture. This photo represents a major issue with Governor John Carney’s administration. He has failed to protect people of color in Delaware. Only 15 percent of the state’s top judges are Black, but the Delaware prison system disproportionately targets people of color. Over half of the inmates in Delaware are Black, despite Black people making up only 23 percent of the state population. Several factors contribute to this statistical problem, but one of them certainly must be the lack of diversity in John Carney’s courts. Rather than improve representation in the courts, Carney’s administration uses outdated pictures to appear as though they are more diverse than they are. These practices have adverse effects on the state’s minority populations and lead to unjust legal treatment. For example, Barry Croft, a white supremacist, was pardoned by Governor John Carney’s all-white Board of Pardons. He then went on to be involved in the plot to kidnap Governor Gretchen Whitmer of Michigan. Meanwhile, inmates of Delaware prison, who are disproportionately Black, are left in dangerous conditions during the COVID-19 pandemic. Several inmates have died from the disease due to mismanagement of the prison system. Governor Carney’s courts fail to provide necessary protection for the state’s most vulnerable populations. This danger extends beyond the courts as well, as Delaware police are also predominately white. Since 2005, Delaware police have shot 56 people and have killed 30. Half of the victims have been Black, and in every shooting, the officers involved were not charged. Delaware is witnessing a legal system in which white police and white judges are determining the fates of white lives, and they are failing at a dangerous level. In the Chancery Court photo, Tamika Montgomery-Reeves is shown to be a Vice Chancellor despite having moved on to the Supreme Court. While this may seem like a small detail at first glance, it is representative of a much larger issue. Governor John Carney’s administration fails to represent Delaware’s people of color, who face an overwhelmingly white legal system.

OPINION Dear friends, People are catching on that Delaware Chancery Court’s no-jury system is a problem. California is now no longer forcing people to bring their litigation to Delaware’s rigged, no-jury system. This is potentially the beginning of the end of Delaware’s supremacy in the incorporation business. Why? Because of shady shenanigans I believe pulled by Andre Bouchard and Leo Strine! The incorporation industry has been dominated by Delaware for years. We are destroying our image by allowing Chancellor Bouchard to create what I see as corruption. Like with Worker Reclassification laws such as AB5, the rest of the country will likely follow California’s move, and require that the right to a jury trial overrides forum selection contracts, which brings a lot of business to Delaware. It’s only a matter of time until Bouchard’s tentacles squeeze so much juice out of Delaware corporations to enrich his former law firm of Skadden Arps and his other pals, that other states will likely follow California’s move to ditch Delaware’s judge-only trials. I’ve been shouting about this from the rooftops for the past few years! Bouchard handing out cases and decisions to enrich certain Delaware elites is undermining our Chancery Court and will, mark my words — if his suspicious activities are not brought to heel — eventually kill the Delaware economy. See the Law.com story below to see why California now believes its Constitution is more important to its residents than letting Bouchard get his tentacles into more stuff. This is exactly why, in my view, Delaware cannot have this kind of power consolidated in the small and seemingly corrupt “Good Old Boys Club” of Chancellor Bouchard and former Delaware Supreme Court Chief Justice Leo Strine who embodies what I consider an arrogance that is not good for Delaware. As always, your comments are welcome and appreciated. Sincerely Yours, JUDSON Bennett-Coastal Network https://www.law.com/delbizcourt/2020/08/07/california-judge-says-right-to-jury-trial-overrides-agreement-to-litigate-in-delaware/ California Judge Says Right to Jury Trial Overrides Agreement to Litigate in Delaware One attorney in the case said the California case calls into question how courts in many states with constitutional rights to jury trial may evaluate forum selection clauses that specify Delaware Chancery Court as a jurisdiction. By Ellen Bardash August 07, 2020 at 02:52 PM A California plaintiff can’t be made to take his case to the Delaware Court of Chancery, a Los Angeles County Superior Court judge has ruled in what that plaintiff’s attorney says is likely the first decision to address the issue. The trial judge’s ruling in the case filed by William West against Access Control Related Enterprises LLC, issued by Judge David J. Cowan of the Los Angeles County Superior Court on July 29, stated that enforcing a forum selection clause requiring a California resident to pursue a case in the Court of Chancery violates Californians’ constitutional right to a jury trial, unless a defendant can prove doing so would not infringe on that right. Because the only jury trials held in the Court of Chancery are done on an advisory basis, with the court not bound by a jury’s decision, West cannot be made to move his case there, despite agreement documents signed with the defendant company including language that required litigation to be pursued in Delaware, Cowan wrote. “The Delaware Court of Chancery is a preferred venue for many commercial disputes based upon the expertise and reputation of the court,” said Geoffrey Grivner of Buchanan Ingersoll & Rooney, who is representing West in his pending case against ACRE in Delaware Superior Court. “This ruling may be pushing back on that norm.” West was one of the three founders of electronic lock giant ACRE, a Delaware limited liability corporation that became involved with LLR Partners, a private equity firm in Philadelphia. West was ACRE’s chief operating officer and chief financial officer. In June 2013, West, ACRE, and other parties signed several documents, one of which stipulates disputes were to be resolved in either a state or federal California court, while the others included language requiring those disputes to go through either the District of Delaware or the Delaware Court of Chancery. In December of 2015, ACRE terminated West’s employment based on his pursuit of a transaction with Mercury Security Products LLC, according to Cowan’s ruling. The following November, West filed a Los Angeles Superior Court complaint that included claims arising from what he said was a manufactured false basis for his termination. The stay, in that case, lifted last week was put in place in May of 2017. West then filed a federal complaint in the District of Delaware, which was ultimately dismissed voluntarily for not having subject matter jurisdiction due to a lack of complete diversity. In November 2017, he filed a complaint in Delaware Superior Court. Not long before West’s case was scheduled to go to trial in March of this year, Judge Mary M. Johnston of the New Castle County Superior Court transferred West’s case to the Court of Chancery. In June, West moved to lift the stay in the California action and implement a stay in Delaware proceedings. Cowan’s ruling, which granted West’s request to lift a stay put in place in May 2017, determined West’s constitutional right to a jury trial preempted the agreement documents that included a forum selection clause, a choice of law provision and a jury trial waiver that, if enforced, would have required litigation between the parties to go through Delaware’s court system and considered under Delaware law without a jury. “It is irrelevant whether Judge Johnston’s decision was based on the forum selection clause or the jury waiver,” Cowan wrote. “The effect of the Transfer Order is to waive West’s right to a jury trial based on a pre-dispute agreement, whether that agreement regards forum selection or the right to a jury directly.” The court ruled ACRE had a burden of proving that enforcement of the forum selection clause wouldn’t substantially diminish West’s right to a jury trial and that that burden of proof hadn’t been met. “This point is undisputed—the Chancery Courts are on the cutting-edge of corporate law and undeniably well-equipped to address issues in this action. But the Chancery Courts do not conduct jury trials,” Cowan wrote. “It goes without saying that an employer-defendant would generally prefer a bench trial while an employee-plaintiff would prefer a jury trial; but ultimately, the parties’ preferences and the competence of the Court of Chancery are irrelevant where the real issue is whether West would be deprived of his right to a jury trial.” With most, if not all, state constitutions including language similar to California’s that guarantees the right to a jury trial, if the ruling remains in effect, West’s counsel believes it could boost claims that litigation should proceed in a plaintiff’s home state rather than in the Delaware Court of Chancery, even if a business incorporated in Delaware or a forum selection clause naming Delaware jurisdiction is involved in the case. “This decision calls into question how courts in many states with constitutional rights to juries may evaluate Delaware Court of Chancery forum selection clauses,” Grivner said. Cowan’s ruling didn’t specify whether a jury trial should be held in Los Angeles Superior Court or Delaware Superior Court. On July 30, Michael L.Banks and Amy M. Dudash of Morgan, Lewis & Bockius, the firm representing ACRE, sent a letter to Johnston asking the case to proceed in Delaware, while West’s attorney said he would prefer the case to be tried in California as Johnston already ruled it should be transferred out of Delaware Superior Court. “In light of Judge Cowan’s decision, we would withdraw our request to have the case transferred to the Chancery Court and agree to a jury trial in Delaware Superior Court, as Plaintiff has requested throughout the litigation in Delaware and as Your Honor has suggested on several occasions,” Banks and Dudash wrote. “This approach would preserve West’s right to a jury trial, while respecting the parties’ contractual choice of Delaware as a forum.” A spokesperson for Morgan Lewis said Thursday the firm has no comment on the case.

A Brief History of the Delaware Chancery

The Delaware Chancery Court is one of the oldest legal institutions in the United States. Its history can be traced back to the Revolutionary war. The Delaware Court of Chancery bills itself as one of the most prestigious courts in the modern world, but even a court with such a long and distinguished history is not immune to corruption and nepotism.

What is the Delaware Court of Chancery?

A chancery court differs in concept from a criminal court, circuit court, or court of appeals. The Delaware Chancery deals in cases of equity. The equity issues that result in Delaware Chancery Court decisions rely solely on a judge’s jurisprudence in applying fairness and common sense rather than legality, rules, and strictures in order to resolve disputes. Chancery courts, like the system found in Delaware, deal with civil cases rather than criminal cases. Delaware Chancery Court decisions revolve around contract disputes and business law. Other types of cases that you might see in a chancery court include:

• Injunction applications
• Enforcement of wills and trusts
• Corporate watchdog cases
• Guardianship cases involving property OR minors
• Other business-based disputes

The Delaware Chancery Court mainly deals with business law due to the sheer number of businesses that are incorporated in Delaware.

History of the Chancery

The Delaware Chancery’s long and storied history stretches all the way back to 1792. Delaware’s Chancery Court is a product of historical English law coupled with concepts derived directly from the first Constitutional Convention. Among the most notable figures in the court’s 230-year history include:

• William Killen, the first chancellor whose distinguished legal experience was a major factor in the Chancery’s formation
• Nicholas Ridgely the second chancellor and father of Delaware equity
• Josiah Wolcott, subject of the “Dirty Deal” scandal of 1916
• Collins J. Seitz who oversaw the case that laid the groundwork for “Brown vs. The Board of Education”
• Andre Bouchard, the current Delaware chancellor who was responsible for the mishandling of the TransPerfect case

History of the Chancery’s Membership

The Delaware Chancery derives much of its power and prestige from its public image as one of the fairest, most experienced legal institutions in America, with profound expertise in business law. Just below the public facade, however, the Chancery has a deep history of being an “old boys club.” There has always been an air of nepotism and political manipulation when naming each successive chancellor, but scandal came to the forefront in 1916 when Josia Wolcott was named chancellor in what came to be known as the “Dirty Deal.” At the time, it was alleged that Wolcott was promoted to the position by a Republican governor despite Wolcott’s Democratic status in order to maneuver one of the governor’s allies into congress. The scandal passed quickly, but the court’s reputation has been stained with favoritism since.

Andre Bouchard: Current Delaware Chancellor

Andre Bouchard was named chancellor in 2014. One of his most controversial Delaware Chancery Court decisions involved TransPerfect, a case in which the chancellor eschewed the court’s historically business-friendly modus operandi, instead using his new platform to attack the company while making political contacts. Since his tenure began, Bouchard has done everything in his power to reinforce the public perception that the Delaware Chancery Court is merely an old boys club. 

Coastal Network

The Coastal Network is an outlet committed to providing a voice against corruption and advocating for transparency in the Delaware court system, business world and beyond. For more on corruption in the United States, including the Delaware Court system, visit www.coastalnetwork.com  

I’ve been using my column as a soapbox to complain about Chancery Court Chancellor, Andre Bouchard, and what I view as the lame nonsense and bullying coming from his bench over the past few years, specifically from the TransPerfect case, among other things, which have been, in my opinion, levels of corruption, too hard to believe. His ties to law firm giant, Skadden Arps, have been well documented here and elsewhere over the past few years.

Well, folks, now we’re seeing what I think is a new low for even this group, new facts have come to light, according to the press release below that, Jennifer Voss, who is a partner in the Skadden Arps’ Wilmington office, was “purported to act on behalf of the Delaware Judiciary when she attempted to silence the advocacy group, Citizens for Pro-Business Delaware (CPBD).” The group is founded by TransPerfect employees and Delaware residents and is looking to help create transparency, accountability and diversity in Delaware courts. So why is Voss seemingly trying so hard to silence this group, in coordination with the Chancery Court? Is it because they’ve been critical of her colleague Robert Pincus? Something isn’t right here, folks.

As we all are, this Citizens group is protected by the First Amendment and no matter how hard attorney Voss tries, that isn’t going to change. Thank goodness our founding fathers created a Constitution that is designed to protect all of us, including free speech, which is one of the things that sets this country apart from others and makes America great! Authoritarian and corrupt people in all walks of life will attempt to skew the law and ignore the Constitution if you let them get away with it. The appearances of impropriety continue to be rampant, in my view, with what I further believe, between such law firms, the state’s courts, and the Bar Association.

Founder Chris Coffey doubled down on the group’s commitment to pursuing these changes and will continue to strive for these goals. Citizens for Pro-Business Delaware are willing to put their money where their mouths are. He said the group will be spending half-a-million dollars this year to put a spotlight on failures in Delaware’s courts while continuing their battle for reform.

He even plans to create a political action committee, dedicated to electing candidates at every level of Delaware’s government. As someone who has deeply cared about and influenced Delaware politics for years, I think that’s a perfectly good idea! No doubt with the dedication and capital this organization is willing to commit, Citizens for Pro-Business Delaware will be an effective political operation! Call me, Mr. Coffey, anytime. I’d be happy to advise you and your group on the ways of Delaware politics and how to get things done in America’s First State! I am happy to promote the changes you advocate because things are not right in Delaware these days in my opinion!

I think Ms. Voss’s attempts to silence Citizens is downright unconstitutional. The First Amendment, this Citizen’s Group, and our great state won’t go down so easily!

Let me know what you think about this, folks! Delaware is Rising!

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Skadden Arps’ Jennifer Voss “Committed a Serious Breach of Ethics” in Attempting to Silence Citizens for a Pro-Business Delaware, TransPerfect Lawyers Say in Recently Filed Court Documents

Citizens for a Pro-Business Delaware pledges to spend $500,000 in 2020 highlighting the failures in Delaware’s courts, in addition to forming a Political Action Committee

May 07, 2020 10:00 AM Eastern Daylight Time

WILMINGTON, Del.–(BUSINESS WIRE)–Following a series of recent filings in the Delaware Court of Chancery, new facts were released publicly that Jennifer Voss, a partner in Skadden Arps’ Wilmington office, was purported to act on behalf of the Delaware Judiciary when she attempted to silence the advocacy group, Citizens for Pro-Business Delaware (CPBD). CPBD, a grassroots organization founded by TransPerfect employees, advocates for transparency, accountability and diversity in the Delaware Judiciary has been subject to threats and hate mail from some of Delaware’s elite law firms.

“If Voss and Skadden would like to engage in a meaningful conversation about how to end corporate corruption and cronyism, and the overwhelming lack of diversity in the Delaware Chancery Court, we’ll meet them anytime and anywhere – we’re in this fight for the long haul.”

During a heated exchange of attorney correspondence, Voss is alleged to have publicly posted privileged settlement communications between attorneys representing TransPerfect and Skadden Arps in violation of ethical canons. The substance of the emails revealed that Voss sought to silence the CPBD movement by disallowing any public discourse that casts a negative light on Custodian Robert Pincus, Skadden Arps, the Chancery Court system, and the State of Delaware.

Said Citizens for a Pro-Business Delaware Campaign Manager Chris Coffey, “Our organization is made up of more than 5,000 Delawareans working to increase accountability, transparency, and diversity not just in the state’s judiciary, but the entire government. The First Amendment clearly protects our right to call out injustice where we see it. It’s unfortunate that Skadden would try to dictate the actions of our members without actually talking to us directly. But what we want to see happen should come as no surprise to anyone, as we have relentlessly advocated for our platform for increased judicial transparency, accountability, and diversity for the better part of a year. To demonstrate our commitment to stay in Delaware for the long haul, we will be spending over $500,000 this year to highlight the failures of transparency and diversity in Delaware’s courts and advocating for reforms to fix the broken status quo, and we’re planning to declare a political action committee dedicated to electing candidates at every level of the state government who support our cause.

“If Voss and Skadden would like to engage in a meaningful conversation about how to end corporate corruption and cronyism, and the overwhelming lack of diversity in the Delaware Chancery Court, we’ll meet them anytime and anywhere – we’re in this fight for the long haul.”

Citizens for a Pro-Business Delaware fight for commonsense and modern-day reforms to the archaic Chancery Court system, and for more diverse representation in courts, and government and in law. It supports the following legislative initiatives:

1.    Establishing an independent Office of Inspector General with a degree of jurisdiction over the Chancery Court, which would ensure a rigorous and regular review process for auditing the Chancery Court’s decisions.

2.    Ensuring that Delaware’s courts reflect the ‘broad diversity’ of Delaware’s citizenry.

3.    Introducing transparency to the judicial nomination process by making public the members of the judicial nominating commission and the names of the candidates they put forward to the Governor.

4.    Building awareness of the lack of diversity in Delaware’s legal industry and advocating for a diverse pipeline to Delaware’s elite law firms.

5.    Ensuring that appointed Members of Courts can’t serve on the Court of Judiciary, which has the power of judicial review.

6.    Ensuring that if a Justice of the Chancery Court appoints a custodian or a receiver to any Firm, Corporation or Officer of the Court for whom they were previously employed or shared business interests with, this conflict must be disclosed and consented to by both parties.

7.    Requiring that any custodian or receiver appointed by the Delaware Chancery Court itemize and make public a complete list of costs incurred because of acting in that capacity.

8.    Allowing a camera in the Chancery Court to ensure that a public record exists of the Court’s actions, allowing citizens and good government groups to audit the Court’s actions and deliberations to make sure they honor justice and transparency.

9.    Requiring ‘wheel spin’ in the Chancery Court so that Chancery Court

Chancellors cannot select cases based on their own self-interest.

10.  Requiring financial disclosure by Delaware’s judges so the public can see the income they receive outside their judicial salaries, including investments, business and charitable affiliations and gifts.

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??

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.

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The lack of diversity sharpens the crisis in the Delaware judicial system

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.”

 

https://youtu.be/CmQuWKDad_I

 

Citizens for a Pro-Business Delaware support diversity on the state’s Supreme Court. Chancellor Andre Bouchard is out of touch with normal Delawareans, and should not be the next Chief Justice of the state’s highest court. Delaware deserves transparency, equity, and diversity in its court system. Join the movement at http://www.delawareforbusiness.org/join-our-efforts.

OPINION Dear friends, I can’t thank my readers enough for the massive overflow of responses sent to me after my recent article titled, “Is The Delaware News Journal’s First TransPerfect Article in Over Six Months: Accurate, a Puff Piece or ‘Fake News’? You Decide,” was published. I have enclosed 20 of your top comments and have removed the last names to protect your privacy. The previous article encompassed several issues, concerning Andre Bouchard’s Chancery Court, the new and completely outrageous “contempt of court” charges against TransPerfect (stay tuned for more in-depth coverage), the amazing political ads raising national awareness of issues in Delaware’s Chancery Court by TransPerfect stockholder Shirley Shawe, the mother of CEO Philip Shawe. She bravely calls out Bouchard for ageism, sexism and corruption. As I have said for years now, there exists a separate system of “law” that Bouchard’s Chancery Court applies to successful entrepreneurs like the Shawes to seemingly drain them dry — and the crony gravy train continues. My sources tell me Bouchard has scheduled another hearing, apparently to again improperly enrich Skadden Arps at TransPerfect’s expense on October 10th, and I am planing on live coverage! Folks, the bottom line, in my view, is that the Delaware Chancery Court’s archaic rules have created, at a minimum, appearances of impropriety, and at worst, outright corruption—and this is unprecedented. You can make a difference in 2020 by voting only for Delaware State Legislature Candidates who promise to take on court corruption and cronyism. The days of free millions to Kevin Shannon, Steven Lamb, Bob Pincus and Bouchard’s other pals must stop—and justice must be served folks. That’s how I see it and what I’m advocating. Again, I thank you for your many comments; please keep them coming! Sincerely yours, JUDSON Bennett-Coastal Network SCROLL DOWN: 1) From Walt: “Judson Bennett’s Coastal Network”, “Citizens for Pro Business Delaware”, and Incessant Legal Action by the Shawe’s, and now Mrs. Shawe is sending out political ads against Biden. Delaware has never seen anything like this before. People are talking. WALT 2) From Lynn: Can’t wait to see Mrs Shawe’s ads against Biden? We appreciate all you do for Delaware. You are a wonderful writer with no fear. – Lynn 3) From Sam: How can they continue billing without explanation ? Andre Bouchard is destroying Delaware’s reputation. There should never be a question about the Chancery Court’s integrity. You are definitely making a difference. Can’t wait to see the ads ! Keep it up buddy. Best, Sam 4) From Alan: The News Journal article seems to capture the essence of the whole picture. Probably fairly accurate with a slight spin in favor of the Chancery. I sure hope Bouchard does not get the Supreme Court. He is bad news. Can’t help admiring their persistence. Attack ads on Biden- Really amusing!! 5) From Dave: Jud, keep beating the drum—you are the talk of Dover-LOL DAVE 6) From Jim: Thanks for the information Judson. Typical News Journal article with its establishment spin. Keep the articles coming. The article does not hurt the Shawes and frankly it brings more attention. Fascinating business. JIM 7) From Patty: Bouchard is up for Supreme Court Chief Justice, we have got to prevent that somehow! Maybe the controversy with TransPerfect and all the negative publicity you put out about him will keep it from happening. We in Sussex all know the power of your pen. You have certainly helped people win and made people lose. Keep up the great work. Delaware loves you Jud! Patty B. 8) From Joe: Jud, I think the piece covers it accurately, maybe with a little bias? Quite a story! 9) From Tim: Judson, Delaware is not used to someone using the power of advertising and activists to change a situation in the Courts. I have a hunch the powers to be are getting nervous. Thanks for all you do. Tim 10) From Pete: Judson, Sounds like CEO Philip Shawe and “Mommy Dearest” don’t mess around. Fascinating stuff and you have done an amazing job on this entire expose’. You gonna get the movie rights? PETE 11) From Jack: Wow! Quite an article—Lot of Puff and spin for the dark side. LOL Love your articles. Best regards, Jack 12) From Dick: Thanks for sending. The appearance of irregularities in this incessant case are very disconcerting. The Shawes are to be commended in my opinion and if they can make a difference. I am all for it and glad. Good job buddy. Dick 13) From Scott: Jud, Biden has lost it. He is a total insipid character now without substance. I rate the piece as a puff piece. The Shawes really got screwed by Bouchard. He has got to go! Keep it up and thank you. Scott 14) From Elsie: Judson, Delaware should be attacked by the Shawes and especially Biden—YOU GO MRS SHAWE!—WOMAN POWER 15 From Laurie: Hi Jud, Quite an article, I like the way you presented it this time. Usually by the time I read your communication above the article, I don’t read the article. The News Journal is definitely putting a negative spin on it. What a mess-Delaware needs to fix this crap, but as long as the Dems have the power, it will only get worse. Keep up the good work. We love your articles. L, Laurie 16) From John: Amazing stuff, Delaware is corrupt and the News Journal is suborning the corruption as it always does! 17) From Bill: Judson, The Delaware we once knew is no more. The establishment is going to protect itself and the News Journal is a liberal rag! Best to you, Bill 18) From Alan: Biden stinks-such an empty suit. Good for Mrs. Shawe. Alan 19) From Jim: Biden is responsible for changing the Bankruptcy laws which screwed everybody and protected the credit card companies. Mrs. Shawe is a little off on her political ads , however there are ads playing from that Pro Delaware Citizens group all over the radio. The media, the legislature, and the corrupt judiciary are all in it together. Keep up the good work. Jim 20) From Sarah: Like the national liberal press, they embellish and spin it the way they want it. Thanks for sending. – SarahI’m going to keep this short, folks, because I want you to read the newest story in the Delaware News Journal about TransPerfect, which I have been writing about for the last few years. I’ve read the story twice and I’d love to hear your opinion. It seems to me that sadly, Bouchard and his good-old-boy network, who continue to take money from TransPerfect every month still — 2 years after the sale — are powerful enough to influence News Journal coverage. Read the story below and see if you agree that the Shawes, who are courageous enough to take on Chancery Court corruption using the Democratic Primary as a backdrop, are portrayed as the antagonist. I say they are really the victims, and they have been month after month to this very day of Skadden Arps continued court-ordered looting — for nothing of value in my view and in the view of employees — but this is sealed up, so how can we really know? Read below, and as always, I look forward to your feedback.

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Why this NY businessman (and his mom) are still attacking Delaware — and Biden

Karl Baker | Delaware News Journal Published 11:14 AM EDT Sep 6, 2019 Joe Biden’s latest political attacker is the mother of a scorned businessman who for years has feuded with Delaware over a court order to auction off his New York translation company. Shirley Shawe purchased television ads in Iowa and New Hampshire that claim the former vice president supports a Delaware judicial system that “cuts out thousands of people who end up hurt by the court’s decisions.” The ads are the latest in a furious public attack, brought by Shawe and her son, Phil, against Delaware and its status as a hub for business formations and corporate legal fights. The offensive first arose in 2015 after the state’s Chancery Court ordered the sale of TransPerfect, a company that calls itself the “largest provider of language and technology solutions for global business.” Chancery Court Chancellor Andre Bouchard ruled that infighting between the company’s founders — and ex-fiances — Phil Shawe and Liz Elting, had created “irreparable” harm” to TransPerfect employees and clients. The two fought over corporate decisions with expletive laden emails and outbursts intended to thwart the other’s will.  At times, it became extreme, such as when Elting poured water on Shawe’s head to end a meeting or when Shawe hid under Elting’s hotel bed and refused to leave during a business trip, according to court documents. Shawe denied the claim. The New York Police even became involved after Shawe claimed Elting kicked him with her high heel. During the Delaware proceedings, Bouchard also ruled that Phil Shawe had repeatedly lied under oath and intentionally destroyed evidence. With Bouchard’s rulings effectively taking her side, Elting largely faded from public view. The Shawes took the opposite approach. The rulings triggered a backlash from the Shawes as well as from numerous workers within the company. Arguing that a sale would tear the company apart, employees hired a high-profile New York public relations company, called Tusk Strategies, which then incorporated an advocacy company called Citizens for a Pro-Business Delaware. What happened next were well-choreographed and well-publicized protests that appeared outside of Delaware’s Supreme Court in Dover. The demonstrations were composed largely of TransPerfect employees who had traveled from New York and Georgia, according to company officials. Inside the Supreme Court was Shawe’s appeal of Bouchard’s ruling. At one point during the proceedings a shouting match erupted between celebrity attorney Alan Dershowitz and Delaware’s outspoken Supreme Court Chief Justice Leo Strine. Separately, the Shawes attempted to lobby lawmakers to change state law to prevent the courts from ordering the sale of profitable companies. Phil Shawe also filed a federal lawsuit against Delaware, claiming the state law permitting Chancery Court to sell a private company violates the U.S. Constitution. In 2017, attacks spread to Amazon’s search for a second headquarters when Citizens for Pro-Business Delaware announced that it would write a letter to the retail giant’s CEO, Jeff Bezos, urging him “to recognize the risks of considering Delaware” for the facility. Citizens for a Pro-Business Delaware hold a press conference outside the Delaware Supreme Court in Dover, Del., before oral arguments in the case of Shawe & Elting LLC. (Jason Minto, The News Journal) Today, the backlash has bled into national politics where Biden and about 20 other Democrats are vying for their party’s presidential nomination. With ads targeting early primary voters, Shirley Shawe appears to be using Biden as a proxy for Delaware’s corporate franchise, which for decades has supported the former vice president as well as boosted state government revenues by billions of dollars. The TV commercials are being paired with full page ads in national newspapers to form a half-million-dollar attack on Biden. It is being launched just as the primary race grows more intense during the months before the Iowa caucuses, early next year. It also comes as Democratic rivals, such as Massachusetts Sen. Elizabeth Warren, chip into Biden’s lead among likely Democratic voters. A spokesman for the Biden campaign said Shawe’s ads mischaracterize statements made during a tense exchange in 2005 between the then-Delaware senator and Warren. Piggybacking on apparent criticism of the Delaware Chancery Court, the ad features an edited video of Warren stating that employees of companies with litigation in Delaware cannot hire lawyers to represent their own interests. What the ad doesn’t show is that Warren states in the unedited version of the brief exchange that her critique is directed at the federal bankruptcy court, located in Delaware, not the Chancery Court. “It’s a clear reminder of the way that third party money poisons our politics with false attack ads and it has no place in this race,” Biden spokesman Jamal Brown said in a statement. In her own statement, Shirley Shawe said Biden expressed support for the Chancery Court in the video, “even if that is not the court Senator Warren was speaking about.” Shirley Shawe, a Republican, also said she does not necessarily want her ads to boost Warren’s candidacy. Instead, it is “just the first in a planned effort to drive awareness.” The Warren campaign did not respond to a request to comment.

It’s the fees!

The Biden attack ads are the latest turn in an odd, yearslong saga that began with a battle over ownership of the profitable TransPerfect. Phil Shawe ultimately won the fight in late 2017 after Elting sold her half of the company. Still, Phil Shawe’s frustration with Delaware continued. He turned his ire toward what he said were millions of dollars of fees that a court-appointed custodian had charged the company following Bouchard’s ruling. He said those bills have ranged between $70,000 to $140,000 each month. “TransPerfect is still being charged,” he said in July. “And we’ve never been allowed to see an itemized bill.” Shawe has formally challenged the legality of those fees with a lawsuit he filed in August in Nevada, the state where he now incorporates TransPerfect. The custodian — Robert Pincus, an attorney at the lawfirm Skadden, Arps, Slate, Meagher & Flom — responded to the suit by asking the Delaware court to impose a contempt order on Shawe for failure to pay the fees. Pincus declined to comment for the story. Meanwhile, a separate line of public advocacy continues to build in Delaware.

While Citizens for a Pro-Business Delaware once said its advocacy was on behalf of TransPerfect, it now calls itself a defender a good governance among judiciaries. In July, the company launched an ad blitz in Delaware demanding transparency in courts and more diversity among its judges. The ads are airing on local radio stations, on Twitter and in The News Journal. The group also held a rally in July in front of Delaware Superior Court in Wilmington where protesters held up oversized foam fingers that stated “Corrupt Chancery.” While Citizens for a Pro-Business Delaware bears a resemblance to grass-roots advocacy, the group is led by Chris Coffey, a publicist who “specializes in creating major media campaigns that dominate news coverage for days and weeks at a time,” according to Tusk Strategies website. The advocacy organization is funded by TransPerfect employees. Its incorporation documents lists its principal address along a highway in Atlanta. Still, in a column submitted to the News Journal, the group implies that its roots are in Delaware by using the pronoun “our” when referring to the Delaware Chancery Court, the Delaware state budget and the Delaware state government. Coffey said he has never represented the group as one made up largely of Delawareans. “The people who are paying us and are most active are TransPerfect employees, or former employees,”  he said. “But did we go to the state fair? Did we go knock on doors and encourage people to sign up? … Yeah.” Contact Karl Baker at [email protected] or (302) 324-2329. Follow him on Twitter @kbaker6.If Former Vice President Joe Biden Doesn’t Win, Delaware Democrats Can Point the Finger at One Person: Andre Bouchard I told you so, folks! You heard it here first. You can’t go around doing, what I clearly see, as stealing $250 million and not expect to be held accountable for it! Andre Bouchard has led his band of cronies, happily, as I see it, milking a very-profitable, not-at-all “dysfunctional” and, in fact, quite successful company for millions upon millions of dollars. Did they think no one was watching? Did they think no one would see this injustice happening over the past few years? You read it here first folks and now you’re reading about this story EVERYWHERE! CBS, Bloomberg News, U.K.’s Daily Mail (see below). This story is not only getting national headlines, it’s getting international headlines and it’s being talked about as the Democratic debates are about to heat back up and Delaware’s own Joe Biden and Democratic presidential hopeful Elizabeth Warren are both part of this international story! You can’t have $250 million being siphoned off over the past few years from a very successful company without serious ramifications. While that money may have gone from TransPerfect to many lawyers associated with Andre Bouchard, and his comrades– Bob Pincus of Skadden Arps, Kevin Shannon of Potter Anderson, and Stephen Lamb of Paul Weiss — and now that missing money is now sparking a controversy the likes of which Delaware has never seen before! Folks, as I see it, we owe all of this negative attention and unflattering notoriety to Chancellor Andre Bouchard. What’s happening is Shirley Shawe, the 79-year-old shareholder at TransPerfect and mother of CEO Philip Shawe, is fighting the “Good Ole Boy’s Club” and taking on the role of an Anti-Chancery Court, Corruption activist. By doing so, she’s holding former Vice President and current 2020 Democratic Presidential candidate Joe Biden accountable for his blind support of Bouchard’s Chancery Court. This isn’t the first time she has taken on Chancery Court Corruption. Here are two examples of Shirley Shawe turning to the airwaves to fight Delaware Chancery Court corruption: I’ve been forewarning about this, pounding the table, and demanding action from the legislature for the last few years. In my opinion, Chancellor Bouchard is undermining our State’s reputation and is detrimental to our entire state economy. I applaud fellow senior-citizen Shirley Shawe for having the courage and grit to take on the establishment cronies. As always, your feedback is welcome!  

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Republican businesswoman behind $500,000 Joe Biden attack ads explains she was furious he supported ‘corrupt’ Chancery Court that dissolved her business costing her millions

Political unknown Shirley Shawe paid for the TV ads in Iowa and New Hampshire to show next week Shawe shared with DailyMail.com the ad is to ‘raise public awareness to the serious issues plaguing America’s most powerful business court’ It is the largest third-party attack ad spend so far in the 2020 campaign The ad includes a 2005 exchange between then Senator Biden and Elizabeth Warren – at-the-time a Harvard professor – as they discussed bankruptcy reform But the ad dices up the dialogue between the two and suggests that they were speaking on the Chancery Court Transcripts from the hearing reveal that Biden had just misspoke and confused bankruptcy courts with the Chancery Court, a point he later clarifies Both Warren and Biden have called for the ad to be pulled from the air Shawe seems to be angry about a business dispute that impacted her son in 2015, more than ten years after the political exchange took place

By MATTHEW WRIGHT FOR DAILYMAIL.COM and KEITH GRIFFITH FOR DAILYMAIL.COM

PUBLISHED: 14:52 EDT, 29 August 2019 | UPDATED: 16:15 EDT, 29 August 2019 A Republican entrepreneur who released a perplexing ad decrying Joe Biden’s relationship with the Delaware Chancery Court has explained that she was angry at the presidential candidate for supporting the court that dissolved her business – costing her millions. Shirley Shawe told DailyMail.com that she released the misleading advert as a means to ‘raise public awareness to the serious issues plaguing America’s most powerful business court.’ ‘I was a personal victim of ageism, sexism, and corruption at the hands of Delaware Chancellor Andre Bouchard over the last five years; my constitutional rights were trampled and my private property was seized by a Delaware government body and put up for auction-and part of the justification for this was my age,’ she claimed in a statement to DailyMail.com. She added the behavior was ‘typical of the “Old Boy’s Club” that runs Delaware.’ ‘The Chancellor turned simple board deadlock into a 3 year occupation of the company I am part owner of, and caused over $250 million to be spent on the case, much of which directly benefited his social circle in Delaware. Bouchard was sworn in as Chancellor in 2014, five years after Biden ended his time as Senator of Delaware and almost a decade after the footage Shawe used in her advert. Shawe clarified that she sought to ‘encourage the candidates to drive reform’ with her ad that correctly identifies Delaware as getting an ‘F’ grade from the 2015 State Integrity Investigation that looks at ‘state government accountability and transparency.’ The ad includes a 2005 exchange between then Senator Biden and Elizabeth Warren – at-the-time a Harvard professor – as they discussed bankruptcy reform. ‘The Delaware court is too male, too white and anything but open,’ the ad’s narrator asserts in the advertisement. In the ad, Biden speaks on how the Chancery Court are open and calls it ‘outrageous’ to suggest otherwise. The clip then shows Warren ‘responding’ and seemingly pointing out how the Chancery Court impacts Delaware workers. But, the clip actually chops up Warren’s entire comment and fails to contextualize Biden’s comment – especially once he realizes that the conversation is about bankruptcy courts and not the Chancery Court. A transcript from the hearing shows that Biden realized his mistake and focused on Bankruptcy. Chancery was only ever mentioned in his initial comment. ‘Employees of companies like Enron literally cannot go to Delaware and hire local counsel, which the Delaware bankruptcy court requires of them before they can make an appearance, and that effectively cuts thousands of small employees, pensioners and local trade creditors out of the bankruptcy process,’ Warren said in the entirety of her quote. ‘If they can’t afford it, they are not there.’ Both Biden and Warren demanded the ad to be pulled, with the former Vice President declaring that the advert mischaracterized his remarks. Shawe shared that she was ‘disappointed’ by the politicians reaction but added that it was not ‘unexpected’ for Biden to respond in that way ‘given his home state court’s attempt to silence me and treat me as less than a person for years.’ She continued: ‘It is typical of the “Old Boy’s Club” that runs Delaware.’ ‘For Ms Warren, I suspect the Senator doesn’t yet fully understand how the Chancery Court harmed me and our 5000 workers worldwide. If she researches this case more deeply, I believe she will understand the facts and may have a different view.’ The Republican apparent endorsement of Warren – as seen on the ad – happens to just fall on that particular issue. Shawe said ‘who knows’ when commenting on who she would support for other issues and added that she and Warren agreed on this particular one. ‘The court needs to be brought up to 2019 and needs transparency,’ she stated. ‘I will keep fighting for that. This is just the first in a planned effort to drive awareness.’ Shawe’s grudge seems to stem from a costly legal battle that her son’s translation company, TransPerfect, fought in Delaware’s chancery court in 2015. ‘Two years after the case has ended, my company is still be billed outrageous sums per month by Skadden Arps, the Chancellor’s and the Chief Justice’s former employers,’ said the businesswoman. ‘We are required to pay these bills by court order, yet we are not allowed to see them, or even know what this work is for.’ She plans to run the television ad in early primary states Iowa and New Hampshire next week in what is the largest third-party attack ad spend so far in the 2020 presidential race. The ad eschews mainstream campaign issues and instead focus on the Chancery Court, a legal system which Shawe blames for a business dispute that hurt her son’s company. ‘The Delaware court is too male, too white and anything but open,’ the ad’s narrator intones. The 60-second ad shows Biden during a 2005 Senate hearing, in which he debated Elizabeth Warren, then a Harvard law professor. The ad accuses Biden of defending the Chancery Court as Warren attacks it. The transcript of the hearing shows that Warren was actually speaking about the bankruptcy courts, a separate forum of equity law, but Biden became briefly confused and referred to chancery court. Delaware’s Court of Chancery oversees business disputes, though not bankruptcy, which is a federal matter. The state’s chancery court has great influence due to the large number of companies that are incorporated in Delaware, which has business-friendly laws. Both Biden and Warren, who are among top contenders for the Democratic presidential nomination, have called for the ad to be pulled. ‘The ad misrepresents Vice President Biden’s position in this exchange from 2005 by manipulating footage to suggest he means one court when he means another,’ Biden campaign national press secretary Jamal Brown told CBS News in a statement. ‘It’s a clear reminder of the way that third-party money poisons our politics with false attack ads, and it has no place in this race,’ he continued. Warren also spoke out against the ad, even though it seems to cast her in a heroic light. ‘Elizabeth does not believe individual donors should have an outsized influence in this primary, and has consistently said that Super PACs or individuals with the means to finance ad campaigns on their own should stay out of the primary,’ her deputy communications director Chris Hayden said. Shawe’s grudge seems to stem from a costly legal battle that her son’s translation company, TransPerfect, fought in Delaware’s chancery court in 2015. In a landmark case, the head of the Delaware Chancery, Chancellor Andre Bouchard, ordered the dissolution of the company even though it was not in financial distress, but because its co-owners could not get along. The court-ordered decision to sell TransPerfect came in 2015 after a chancellor concluded the feuding CEO’s Philip Shawe and Elizabeth Elting were ‘hopelessly deadlocked’ over significant matters and business decisions. Shirley Shawe owned 1 percent of the company at the time of the forced sale, which resulted in her son Philip Shawe gaining ownership by bidding in the public auction. Shirley Shawe launched a crusade against the chancery courts, however, lobbying lawmakers to banned forced sales like the one of TransPerfect. ‘When a judge makes a precedent and makes a ruling to just sell a privately held company, then why would other people be motivated to start a company and why would they be motivated to incorporate in the state of Delaware? If someone is just going to take their private property?’ Shawe told WMDT-TV in 2017. Shawe has said through a spokesperson that she is a Republican and did not intend to boost Warren with her ad. She has vowed to run to run the TV ads in spite of the candidates’ protests, and has also reportedly ordered print newspaper ads on the subject.

What is a Court of Chancery?

Chancery courts began with petitions to the Lord Chancellor of England, and developed into a parallel legal system along with common law courts. Chancery dealt with issues of equity, or what is fair, rather than matters of law, and had a looser set of rules to speed to pace of proceedings. Instead of judges, they had chancellors, and had jurisdiction over trusts and estates, guardianship over children and ‘lunatics’. They also handled lawsuits requesting something other than financial damages, such as an order requiring a party to perform a specific act. Some states in the early U.S. republic replicated this dual legal system, but the two systems were merged in England in 1875. Today, the U.S. Bankruptcy Court operates as a court of equity at the federal level, and several states maintain separate court systems for matters of law and equity. Delaware, Mississippi, New Jersey, and Tennessee still make a distinction between a ‘court of law’ and chancery court.