TransPerfect Notches Delaware Supreme Court Victory as Divided Court Expands Appellate Panel to Full Bench

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Mar 03, 2022, 18:33 ET

NEW YORK and WILMINGTON, Del, March 3, 2022 /PRNewswire/ -- TransPerfect, the world's largest provider of language and technology solutions for global business, today announced that the Supreme Court of Delaware issued an order moving the matter TransPerfect Global Inc. v. Pincus from a three-justice appellate panel to the full Court to be considered en banc.

The order confirms that at least one of the Justices of the Delaware Supreme Court has recognized the merit of 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 overbilled the company many millions of dollars.

TransPerfect argued, among other things, that retired Chancellor Bouchard erred by awarding vast fees to his former employer Skadden for work performed in making many unnecessary and losing motions (including three unsuccessful contempt motions against the company). It also objected to Bouchard's award of what amounted to "fees on fees" being charged by Pincus and Skadden despite his fiduciary duty to the company.

Unrelated to alleged billing fraud, TransPerfect also argues that Skadden alum Chancellor Bouchard 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 negotiated. Bouchard's overreaching (which was encouraged and drafted by his former employer, Skadden) even went so far as to impose obligations and restrictions on non-parties for the benefit of Pincus and Skadden.

"TransPerfect has done nothing but succeed for our clients, and create thousands of jobs—and for this, we've endured nearly 10 years and $50 million of pillaging at the hands of the Delaware Chancery Court and its appointees. It's time for the Delaware Supreme Court to step in, stop what we consider to be fraudulent billing practices by Robert Pincus and Skadden Arps, limit the Chancery's power to unconstitutionally rewrite contracts, and put this matter to rest," stated Phil Shawe, TransPerfect President and CEO.

Under the rules of the Delaware Supreme Court, the case will be presented to the full five-member panel en banc because the original three-member panel could not reach a unanimous decision. While the split decision itself was a significant victory for TransPerfect, concerns exist about whether a fair appeal can be heard in front of the five-panel bench because Chief Justice CJ Seitz has twice disqualified himself on appeals involving the company. His conflict of interest now seems more acute because this appeal will likely affect the viability of a pending case between TransPerfect and Chief Justice Seitz's former law firm Ross, Aronstam & Moritz. Ross Aronstam was sued for malpractice based on a claim that the firm failed to adequately represent TransPerfect (as its appointed attorney) and instead took instruction from Pincus to assert in Chancery Court that it was NOT in TransPerfect's best interest to see the bills it was being court ordered to pay to Skadden Arps.

Equally concerning is the fact that the Delaware Supreme Court has indicated it will consider and decide the appeal without the benefit of oral argument notwithstanding the clear dissension among the three justices of the original appellate panel—a part of the decision TransPerfect opposes.

TransPerfect attorney Martin Russo stated, "I am pleased to know that at least one Justice of the Delaware Supreme Court is giving serious scrutiny to this case of judicial overreach and outrageous billing, but I am also very surprised that after a split decision the Court will not allow oral argument from the parties."

About TransPerfect
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 6,000 global organizations employ TransPerfect's GlobalLink® technology 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.

SOURCE TransPerfect