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The Edelsteins, Faegenburg, and Brown Announce New York Appellate Division, First Department Gives Transperfect’s CEO, Phil Shawe His Fourth Victory Following Three in a Row in Delaware Courts


Following a String of Wins in the Delaware Courts, the New York Appellate Division Denies Elting’s Motion to Dismiss

On September 24, 2019, the Appellate Division First Department issued a decision denying Liz Elting’s motion to dismiss Phil Shawe’s appeal of his tort claims against Elting, fully rejecting Elting’s legal team’s arguments in support of dismissal.

The Appellate Court shot down the unsubstantiated claim that Shawe’s appeal should be dismissed because of “serial” litigation.

This decision comes on the heels of Shawe and TransPerfect's management team scoring three victories in a row in the Delaware Courts in the hotly contested TransPerfect litigation. TransPerfect’s Shawe first won when the Co-Founder prevailed in the court ordered auction of the business on November 19, 2017. Next, the deal withstood strenuous objections of Elting's legal counsel, including Kramer Levin and Potter Anderson, on February 15, 2018, when Chancellor Bouchard ruled that all five of their objections were "entirely without merit." During this process, Elting's legal team also attacked the ethics of the Court Custodian, Bob Pincus of Skadden Arps, accusing him of a variety of misconduct, including having a disabling conflict of interest, and abdicating his duties.

Most recently before the New York Appellate Division's decision, Shawe emerged victorious from Elting's appeal in the Delaware Supreme Court in a 5-0 unanimous decision on May 3, 2018.

As a result of the Appellate Division's decision in New York, Shawe's appeal will be heard regarding his right to receive attorney’s fees based on Elting’s prosecution and subsequent withdrawal of meritless, fraudulent and retaliatory counterclaims. Shawe is seeking reimbursement of attorney’s fees for having to defend false claims for several years until they were ultimately withdrawn just prior to being heard on the merits.

The Appellate Court did not limit or obstruct Shawe from being fully heard in the Appellate Division as to whether the lower New York Court erred when it did not conduct a review of certain emails that allegedly reveal a scheme by Elting's attorneys to create a false cause of action against Mr. Shawe.

When asked about the decision, Shawe’s attorney, Glenn Faegenburg of The Edelsteins, Faegenburg, and Brown stated “We look forward to fully briefing this matter and getting our day in court to address the false claims against Mr. Shawe. It is our view they were part of a coordinated, but thankfully unsuccessful, attempt by Elting's law firms to interfere with Shawe's ability to finance his bid for TransPerfect. The bid was financed, and the company is now performing better than ever with anticipated revenues in excess of $750 million this year." Faegenburg continued, "When attorneys knowingly concoct fake claims, and substantial time, money and effort is expended to defeat them, there should be consequences."

View source version on businesswire.com: https://www.businesswire.com/news/home/20191004005485/en/