Outrageous oral arguments in Delaware Supreme Court
The Crux of it
I watched with interest the video of the recent Delaware Supreme Court hearing of Oral arguments in the controversial TransPerfect Global case (Shawe vs. Elting). Shawe is appealing the outrageous ruling by Chancellor Andre Bouchard to force the sale at public auction of the stockholder’s shares. I have been on top of this case from the beginning and there is no doubt in my mind that the adjudication by Bouchard was based on bias and cronyism, rather than existing law. There were innumerable appearances of improprieties that any reasonable observer would find disturbing. The possibility of the loss of 4,000 jobs is a distinct reality if the Delaware Supreme Court upholds the Chancery Court’s decision.
Famous attorney and litigator Alan Dershowitz was representing Shirley Shawe (Philip Shawe’s mother) in this appeal. The oral arguments were fascinating as Chief Justice Leo Strine grilled all the attorneys, but more so Shawe’s representatives. It was apparent that Strine was not going to rule against his protégé and former colleague at Sadden Arrps, Chancellor Andre Bouchard, who egregiously ruled for Elting’s position. During the oral presentations, the taking’s clause from the 5th amendment of the Constitution of the United States was an issue—basically the illegal taking of property by the court/government was the significant and main focus of the discussion. Was ordering the sale of the stock by the Chancery Court a taking?? At the end of the session, Alan Dershowitz tried to interject a statement and Justice Stine basically yelled at him to step away. What an arrogant man Strine appeared to be to this humble writer and observer. Strine seemed to have already made up his mind.
Frankly, the appeal does not look good for the Shawes in my opinion. However, with Dershowitz on the scene, this fascinating litigation could go all the way to the United States Supreme Court. Regardless, this whole deal is an expensive travesty of Justice, bad for Delaware business, and puts Delaware’s reputation as the best corporate venue in America at risk.
Please turn on your sound, then click on the link below to watch the Delaware Supreme Court in action. It is pretty obvious from the start that Strine was showing bias against Shawe. I always thought the court was supposed to analyze the case without passion or prejudice. This looks bad for Delaware.