TransPerfect Wins Delaware Supreme Court Victory as Divided Court Expands Appeals Panel to Full Bench
NEW YORK and WILMINGTON, Del, March 3, 2022 /PRNewswire/ — TransPerfect, the world’s largest provider of language and technology solutions for global businesses, today announced that the Supreme Court of Delaware issued an order moving the case TransPerfect Global Inc. v. Pincus from a three-judge appeal panel to the Full Court to be considered in bench.
The order confirms that at least one of the justices of the Delaware Supreme Court accepted TransPerfect’s argument that the former custodian Robert Pincus and his law firm Skadden Arps took advantage of the Chancery Court’s lack of oversight and overcharged the firm by millions of dollars.
TransPerfect argued, among other things, that retired Chancellor Bouchard erred in awarding huge fees to his former employer Skadden for work done by bringing numerous wasteful and losing motions (including three unsuccessful contempt motions against the company). He also objected to Bouchard’s award of what amounted to “fees on fees” charged by Pincus and Skadden despite his fiduciary duty to the company.
Unrelated to the alleged billing fraud, TransPerfect also argues that Chancellor Bouchard, formerly of Skadden, issued an overly broad discharge order that unconstitutionally expanded the securities purchase agreement drafted by Pincus and Skadden. to create far more benefits for them than they bargained for. Bouchard’s excesses (which were encouraged and engineered by his former employer, Skadden) even went so far as to impose obligations and restrictions on not parties for the benefit of Pincus and Skadden.
“TransPerfect has done nothing but succeed for our customers and create thousands of jobs – and for that we have endured nearly 10 years and $50 million of plunder at the hands of the Delaware Chancery Court and its appointees. It’s time for the Delaware Supreme Court to step in, end what we see as fraudulent billing practices by Robert Pincus and Skadden Arps, limit the chancery’s power to unconstitutionally rewrite contracts, and put end to this case,” said Phil ShawPresident and CEO of TransPerfect.
Under Delaware Supreme Court rules, the case will go to the full five-member panel en banc because the initial three-member panel was unable to reach a unanimous decision. While the split decision itself was a significant win for TransPerfect, concerns exist over whether a fair appeal can be heard before the five-team bench, as Chief Justice CJ Seitz twice disqualified himself. in calls involving the company. His conflict of interest now appears more acute as this appeal will likely affect the viability of an ongoing deal between TransPerfect and Chief. of Judge Seitz former law firm Ross, Aronstam & Moritz. Ross Aronstam was sued for professional misconduct based on an allegation that the company failed to adequately represent TransPerfect (as its appointed attorney) and was instead instructed by Pincus to assert in court Chancery that it was NOT in TransPerfect’s interest to see the bills it was ordered to pay by the court to Skadden Arps.
Equally concerning is the fact that the Supreme Court of Delaware has indicated that it will consider and decide the appeal without the benefit of oral argument despite the apparent dissent between the three judges of the original appeal panel – part of the decision to which TransPerfect opposes.
TransPerfect Lawyer Martin Russo said: “I’m glad to know that at least one Delaware Supreme Court justice is seriously considering this case of judicial abuse and outrageous billing, but I’m also very surprised that after a split decision, the Court won’t does not allow party pleadings.”
About Trans Perfect
TransPerfect is the world’s largest provider of language and technology solutions for global businesses. From offices in more than 100 cities on six continents, TransPerfect offers a full range of services in more than 170 languages to customers around the world. More than 6,000 organizations worldwide use TransPerfect’s GlobalLink® technology to simplify multilingual content management. With an unparalleled commitment to quality and customer service, TransPerfect is fully ISO 9001 and ISO 17100 certified. TransPerfect is headquartered in new Yorkwith regional headquarters in London and hong kong. For more information, please visit our website at www.transperfect.com.