Citizens for a Pro-Business Delaware is criticizing a decision by newly sworn-in Chancellor Kathaleen McCormick over billing for services related to the sale of TransPerfect.
Lawyers for TransPerfect Global have requested a change on Chancery Court Chancellor Kathaleen McCormick’s decision regarding Skadden Arps’ past billing practices.
TransPerfect has asked for more detail on billing practices from the Chancery Court-appointed custodian of the company, Robert Pincus, a former Skadden Arps partner, after being billed more than $44 million the past years.
A letter to McCormick stated that “Pincus’s gamesmanship and bill churning continues with these motions and refusal to engage in discussions towards compromise solutions to outstanding issues… Encouraging and rewarding motion practice and scorched-earth tactics over compromise is the antithesis of judicial efficiency and has an antithetical result.”
Chris Coffey, campaign manager of Citizens for a Pro-Business Delaware stated: “TransPerfect employees created Citizens so that other workers would not have to experience the fear of having their livelihoods in the hands of an opaque and out-of-touch Chancery Court. With the appointment of Chancellor McCormick, we have renewed hope that the court will move away from the backdoor dealings that defined the (Andre) Bouchard era, but this ruling does the opposite. Instead of more transparency, Chancellor McCormick is doubling down on the old way of doing business in Delaware. We need a change – we won’t stop our fight until Chancellor McCormick and all justices on the Chancery Court commit to real transparency that will restore public trust in our courts.”
TransPerfect is a New York-based business services company that went through an ownership dispute with founders who controlled a 50% share of the company.
While Chancery ultimately determined co-founder Elizabeth Elating should sell her share to Philip Shawe, fees related to the use of a custodian handling the sale remain an issue.
Under judicial rules, Chancellors are barred from commenting on allegations.