Potter Anderson Moves for Nationwide Filing Injunction Against Shawe
Attorneys from Potter Anderson & Corroon are asking a Delaware federal judge to approve a nationwide filing injunction and monetary sanctions against Philip R. Shawe and his Delaware counsel, after the TransPerfect co-founder accused the firm of making a misleading application for attorney fees in court documents.
November 08, 2017 at 07:43 PM
12 minute read
Attorneys from Potter Anderson & Corroon are asking a Delaware federal judge to approve a nationwide filing injunction and monetary sanctions against Philip R. Shawe and his Delaware counsel, after the TransPerfect co-founder accused the firm of making a misleading application for attorney fees in court documents.
Potter Anderson and Kevin R. Shannon, a partner at the firm, on Tuesday blasted Shawe's $75,000 tort claim, calling it a meritless and a bad faith attempt to relitigate issues already in the Delaware state courts.
In a court filing, the firm said the complaint was yet another in a series of “habitually filed baseless lawsuits” aimed at attacking people aligned with his former business partner, and called for a prohibition against any further litigation stemming from the Chancery Court dispute.
“The complaint is frivolous, harassing and vexatious—among many other descriptors of a
bad-faith filing,” Potter Anderson said in support of its motion.
An attorney for the firm continued: “Anything short of a nationwide filing injunction will not effectively prevent Shawe from continuing to abuse court processes without regard to the meritlessness of his claims or the costs and burdens he imposes on his litigation targets and the limited resources of the courts.”
Shawe declined to comment Wednesday on the substance of Potter Anderson's sanctions motion.
In September, Shawe accused Shannon and Potter Anderson of fudging the numbers in sworn affidavits last year documenting the firm's expenses related to its work on behalf of Elizabeth Elting, who had founded TransPerfect with Shawe in 1992 but was suing at the time to dissolve the firm amid intractable corporate gridlock.
Ultimately, Shawe was sanctioned $7 million for litigation misconduct, including lying under oath. He was ordered to pay all of Elting's fees in conjunction with the sanctions hearing, plus one-third of Elting's legal fees for litigating the trial on the merits.
According to Shawe, the firm had failed to itemize any support for $1.4 million in fees that it said it had billed to its client, Elting. The omission, Shawe said, had made it impossible for the court to determine how much of that total Shawe would have to cover for Elting.
“Defendants' conduct was improperly made solely to harm Shawe because it served
no legitimate litigation goal, and provided no benefit to defendant. Further, by filing the subject affidavit and deceiving the Court of Chancery defendants violated their ethical responsibilities,” said Shawe's attorney Christopher M. Coggins.
Coggins, of Coggins Law, was not immediately available to comment.
Ultimately, Chancellor Andre G. Bouchard approved Potter Anderson's calculation of more than $466,000 over Shawe's objections. The decision was later upheld by the Delaware Supreme Court.
Through Coggins, Shawe said in the complaint that the chancellor's decision to accept the fees without itemization raised the “appearance of favoritism.” However, the filing made no specific assertions regarding Bouchard beyond a footnote, which listed “anecdotal facts” regarding the professional relationship between the two men.
Shannon and another Potter Anderson attorney representing the firm did not return calls Wednesday seeking comment on the litigation.
Potter Anderson's sanctions motion comes as state and federal courts have increasingly turned away other lawsuits from Shawe, stemming from TransPerfect's Delaware Court of Chancery-ordered sale.
In one case, New York Supreme Court Commercial Division Justice Shirley Werner Kornreich issued a clear warning that Shawe refrain from filing any more cases in New York state court, and floated the possibility that any further litigation in that state would be met with a filing injunction.
In Tuesday's filing, Potter Anderson said the time had come to put an end to Shawe's “repeated abuse” of the litigation process.
“It is not enough to simply dismiss the complaint and award monetary sanctions against him and Coggins,” the firm said. “There can be no doubt that Shawe will simply file more frivolous litigation until he is enjoined from doing so. Shawe's abusive conduct must be stopped.”
The case is captioned Shawe v. Potter Anderson & Corroon.
Philip Shawe.Attorneys from
In a court filing, the firm said the complaint was yet another in a series of “habitually filed baseless lawsuits” aimed at attacking people aligned with his former business partner, and called for a prohibition against any further litigation stemming from the Chancery Court dispute.
“The complaint is frivolous, harassing and vexatious—among many other descriptors of a
bad-faith filing,”
An attorney for the firm continued: “Anything short of a nationwide filing injunction will not effectively prevent Shawe from continuing to abuse court processes without regard to the meritlessness of his claims or the costs and burdens he imposes on his litigation targets and the limited resources of the courts.”
Shawe declined to comment Wednesday on the substance of
In September, Shawe accused Shannon and
Ultimately, Shawe was sanctioned $7 million for litigation misconduct, including lying under oath. He was ordered to pay all of Elting's fees in conjunction with the sanctions hearing, plus one-third of Elting's legal fees for litigating the trial on the merits.
According to Shawe, the firm had failed to itemize any support for $1.4 million in fees that it said it had billed to its client, Elting. The omission, Shawe said, had made it impossible for the court to determine how much of that total Shawe would have to cover for Elting.
“Defendants' conduct was improperly made solely to harm Shawe because it served
no legitimate litigation goal, and provided no benefit to defendant. Further, by filing the subject affidavit and deceiving the Court of Chancery defendants violated their ethical responsibilities,” said Shawe's attorney Christopher M. Coggins.
Coggins, of Coggins Law, was not immediately available to comment.
Ultimately, Chancellor Andre G. Bouchard approved
Through Coggins, Shawe said in the complaint that the chancellor's decision to accept the fees without itemization raised the “appearance of favoritism.” However, the filing made no specific assertions regarding Bouchard beyond a footnote, which listed “anecdotal facts” regarding the professional relationship between the two men.
Shannon and another
In one case,
In Tuesday's filing,
“It is not enough to simply dismiss the complaint and award monetary sanctions against him and Coggins,” the firm said. “There can be no doubt that Shawe will simply file more frivolous litigation until he is enjoined from doing so. Shawe's abusive conduct must be stopped.”
The case is captioned Shawe v.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllZoom Faces Intellectual Property Suit Over AI-Based Augmented Video Conferencing
3 minute readEtsy App Infringes on Storage, Retrieval Patents, New Suit Claims
Law Firm Sued for $35 Million Over Alleged Role in Acquisition Deal Collapse
3 minute readTrending Stories
- 1Uber Files RICO Suit Against Plaintiff-Side Firms Alleging Fraudulent Injury Claims
- 2The Law Firm Disrupted: Scrutinizing the Elephant More Than the Mouse
- 3Inherent Diminished Value Damages Unavailable to 3rd-Party Claimants, Court Says
- 4Pa. Defense Firm Sued by Client Over Ex-Eagles Player's $43.5M Med Mal Win
- 5Losses Mount at Morris Manning, but Departing Ex-Chair Stays Bullish About His Old Firm's Future
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250