TransPerfect escalates battle with custodian, law firm

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Lawyers  for TransPerfect Global, Inc. have escalated the fight with the Chancery Court-appointed custodian of the company

The 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 be barred from submitting fee petitions.

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.”

Shawe has been battling Skadden Arps over fees charged after the custodian ruled in his favor during a dispute with the 50-50 co-founder of the company.

The motion comes after another filed last week over Skadden Arps charging  TransPerfect  for upwards of $14 million in legal fees since being appointed the company’s custodian and for what is viewed as a lack of detailed invoices. 

Lawyer’s for Elizabeth Elting, whose share of the business went to Shawe agreed. with the need for documentation, Shawe’s lawyers stated. 

Citizens for a Pro-Business Delaware, a group made up of  TransPerfect employees, was formed after the TransPerfect case was settled in 2015. The group is seeking more minority representation among Delaware judges and other changes in the court system. 

Chris Coffey, Citizens for a Pro-Business Delaware’s Campaign Manager, took a shot at Chancellor Andre Bouchard. “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.

The president of the Delaware State Bar Association William Brady and others have come  to Bouchard’s defense and has said the Citizens is a front for a campaign by Shawe to discredit the state’s judiciary.

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