The Philip R. Shawe Scholarship Competition Analyzes the Constitutional Aspects of TransPerfect Case, Having Narrowed the Field of Briefs to the Final Three Will Honor Them In New York City
Finalists Will Compete in a Mock SCOTUS Oral Argument Before a Distinguished Panel of Judges on July 20th in Brooklyn Borough Hall.
Property Rights Advocate Suzette Kelo will Attend as an Honored Guest, and Harvard Law Professor Alan Dershowitz will Deliver the Keynote Address
NEW YORK, July 11, 2017 /PRNewswire/ -- The Philip R. Shawe Scholarship Competition, sponsored by Philip Shawe has narrowed the field from 240 entries to its final three contestants who will participate in mock SCOTUS oral arguments, followed by an award ceremony in Brooklyn. The top ten students and/or teams have all been invited to New York to be honored together, and more than $100,000 in scholarships will be awarded. Mr. Shawe is Co-CEO of TransPerfect, the world's largest privately-held provider of language and technology solutions. Professor Alan Dershowitz, who helped narrow the field of entrants will also give the keynote address. Property rights advocate Suzette Kelo from the infamous Kelo v. New London "Takings" case will join the event as an honored guest.
After they hear oral arguments from the three student teams who already have presented the most compelling briefs in the first stages of the competition, the panel of judges will determine which entrants merit the first, second, and third place awards. The mock SCOTUS oral arguments will take place on July 20th, 2017 at 5:00 PM at the historic landmark and newly renovated courtroom inside Brooklyn Borough Hall (209 Joralemon St, Brooklyn, NY 11201), followed by an award ceremony on the roof of the Brooklyn One Hotel, which will be attended by various prominent and esteemed guests.
The top three entrants who will be presenting oral argument to the panel of distinguished judges are:
- Allison Tilden and McKaye Neumeister of Yale Law School
- Steven Hermosa from the University of Florida Levin College of Law
- Catherine Dowie from Suffolk University School of Law
The remainder of the top ten entrants who will be present and honored during the evening are:
- Adam Ellis of UNLV William S. Boyd School of Law
- Chanya Sainvilus of Hofstra Law School
- Maraiya Hakeem of Fordham Law School
- Michael Kustra and Allyssa Wall of the University of North Dakota
- Reshma Kamath of Northwestern Pritzker School of Law
- Emily Davis of The University of Pittsburgh School of Law
- Chamya Reed of The University of Pittsburgh School of Law
Philip Shawe said, "This was an exciting competition, and the students worked extremely hard to show clear and convincing evidence that the legal principles adopted by the Delaware Chancery Court were in direct contravention of the takings clause and the 5th Amendment to the U.S. Constitution."
"One of the most controversial decisions in U.S. history regarding property rights is Kelo v. New London, Connecticut and we believe there is a real opportunity for the Supreme Court to right the injustice in the TransPerfect case and overturn Kelo as well," Shawe said.
Shirley Shawe, the third stockholder of TransPerfect who is also being forced to sell her private property against her will for a non-public purpose, said, "Students from around the country sought to reverse Delaware Chancellor Andre Bouchard's unprecedented decision that was a clear violation of the Fifth and Fourteenth Amendments, and they did a terrific job."
Ms. Shawe said that she plans to file an Inverse Condemnation claim against the State of Delaware if the Dissolution and Forced Sale of this highly successful company proceeds. Ms. Shawe holds the "swing vote" for blocking vs. control rights -- and this premium is being ignored by Chancellor Bouchard's forced auction.
Shawe launched the competition to award grants totaling $100,000 ($65K, $25K and $10K) to the top three law school students (or student teams) who could prepare the most compelling argument to the United States Supreme Court for reversing the decision of the TransPerfect case in the Delaware Chancery Court that seeks to force the sale of a highly-profitable private company against the wishes of two out of three shareholders. Despite claims of massive fraud committed by Shawe's legal opponent to manufacture deadlock, the resulting decision in this case creates a non-negotiated "windfall" for Liz Elting, should she exit/sell the business.
The competition was open to all second- and third-year law school students, and focused on the TransPerfect case, (In re: TransPerfect Global, Inc.) in which the Delaware Chancery Court's order has been challenged as unconstitutional, including "Due Process" and the "Takings Clause," which forbids the government from seizing private property and assigning it from one private party to the other. The students addressed the constitutional implications of the Delaware courts expanding its powers under the decision, using the "deadlock" rationale to force the sale of the profitable and thriving industry leader.
Presiding Judge Carmen Beauchamp Ciparick (Ret), Senior Associate Judge of the New York State Court of Appeals, Justice Melvin Schweitzer (Ret), New York State Supreme Court, Commercial Division, Professor Alan Dershowitz (also legal counsel to Philip and Shirley Shawe), and Joseph D. Hansen, former Director of Interns for Justice Schweitzer, New York State Supreme Court, Commercial Division reviewed the top submitted briefs and will determine the winner from the top three finalists.
ISSUES
Violations of the Fifth and Fourteenth Amendments
Due Process issues arise because Phil and Shirley Shawe were under no notice that their property could be confiscated. Unlike public shares, which fulfill the due process requirement of a forced buyout by having notice printed on the shares themselves, the shares of Phil Shawe and his mother Shirley Shawe in this privately held company bear no such notice. Additionally, because the firm is highly profitable, and extremely successful by all measures, there is no public purpose for the "Takings" such as to protect creditors in a bankruptcy scenario (which does not exist here).
"The lack of due process and this unconstitutional taking is the essence of this case," Professor Dershowitz said. "I am thrilled that these students have developed cogent and compelling arguments supporting the facts. I'm excited to hear their oral arguments, and play a role in handing out the well-earned awards."
Philip Shawe said, "This decision has also caused more unforeseen harm to TransPerfect than any alleged dysfunction between the two Co-Ceo's has or could ever have caused and should be forbidden as a matter of public policy. Since the court appointed a custodian from Skadden Arps to act as a third director he and his firm have billed over $3 million and overall Custodian related expenses are now more than $20 million."
"Since Chancellor Bouchard decided to hear this case and after it was obvious that Elting was venue shopping after her case had just been thrown out in New York State Supreme Court, the parties have each been forced to spend close to $40 million in legal fees bringing the total cost of the case to TransPerfect and its Founders to over $100 million," Shawe said. "This is a hefty sum when the solution to the alleged 'deadlock' could have been as simple as ordering the parties to appoint a third-director," Shawe said.
The Case:
In August of 2015, Delaware Chancellor Andre Bouchard ruled in favor of Elizabeth Elting, TransPerfect's Co-CEO, after she filed a petition for dissolution and it was appealed in January 2017 to the Delaware Supreme Court. The appeal was affirmed but in a rare rebuke of her fellow colleagues, Justice Valihura wrote a stinging 35-page dissenting opinion that Bouchard's decision was impermissible under Delaware law. The scholarship competition was established to help stir the next generation of great legal minds to answer the complex questions raised by such an unorthodox and controversial decision. Never before in the history of the United States, have the shareholders in a thriving, successful and privately held company been forced to sell their property when there is no public purpose or benefit and without due process.
The issues surrounding this case, and Chancellor Bouchard's novel application of the law, is expected to be heard in the Federal District Court of Delaware and will be the subject of a petition to the United States Supreme Court for a writ of certiorari, provided a consensual solution is not reached.
Visit philshawescholarship.com or lawschoolchallenge.com
SOURCE Philip Shawe
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