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TransPerfect Co-CEO Philip Shawe Defeats Elizabeth Elting's Motion to Dismiss in New York Supreme Court

Legal Opposition's Collateral Estoppel Arguments Based on the Delaware Chancery's Previous Rulings Were Rejected, and "Substantial Discovery" will Begin in New York according to the Ruling from an August 15th Court Conference


News provided by

The Edelsteins, Faegenburg & Brown

Aug 22, 2017, 14:00 ET

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NEW YORK, Aug. 22, 2017 /PRNewswire/ -- Attorneys for Philip Shawe, the Co-CEO of TransPerfect Global, the world's largest privately-held provider of language services and language-related technology solutions, today announced that he has successfully defeated a bid by Co-CEO Elizabeth Elting to dismiss Shawe's claim for assault in New York Supreme Court. Shawe's legal team, The Edelsteins, Faegenburg & Brown, confirmed that this victory supports Shawe's position that a series of adverse discovery decisions and actions taken by the Delaware Chancery Court are not binding on Mr. Shawe's New York tort claims. 

The defeat sustained by Defendant's counsels puts them in a peculiar position. According to court documents, some among Elting's counsel stand accused of conspiring to devise a scheme to knowingly plead a false defamation claim against Shawe. 

The assault claims survived, while Elting's Prima Facie Tort claim against Shawe was dismissed through the combination of the August 15th conference and previous court order. Elting's attorneys unsuccessfully argued to the New York Court that Delaware Chancellor Andre Bouchard's controversial decisions were binding on Shawe's New York Tort case.  Their claim was overruled.

Shawe's attorney Glenn Faegenburg said, "The New York Judge, correctly, rejected the notion that previous rulings in unrelated cases should bind her decision (all collateral estoppel and res judicata arguments were rejected). As such, the New York Court will not be bound by the extremely controversial and unprecedented Chancery Court decisions, which have sparked widespread controversy, where Elting emerged victorious after presenting a zero-witness case when Shawe had ten fact witnesses testify at the Delaware trial." 

Faegenburg continued, "I'm pleased that Delaware's 'small-town justice' did not infect Mr. Shawe's meritorious claims against Defendant Elting in my case. The Delaware decisions were not based on traditional notions of evidence, testimony, or justice. Here, the New York Court will hear Mr. Shawe's Tort case on its merits. As it should." 

Discovery will begin immediately. Both parties will have 15 days to present initial requests for discovery, and 45 days to respond to those requests.  Depositions will follow, to be completed no later than November. 

Faced with two competing orders, the Judge selected Mr. Faegenburg's Proposed Order for signing. The Court's Order emanating from the conference, can be found at the following link: 

https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=cz6qbPZC8GRIGLcTh/n9PQ==&system=prod.  

In an unrelated case, Elting's counsel at the law firm of Kramer Levin Naftalis & Frankel stands accused of devising another fraudulent scheme with their client to create premeditated deadlocks to convince the Court to dissolve a highly successful company, TransPerfect. The conspiracy, for Elting's personal financial gain is, according to court documents, memorialized in an email dated 12/30/2013.   

Mr. Faegenburg's case is New York State Supreme Court Index Number 155890/2014.  

SOURCE The Edelsteins, Faegenburg & Brown

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