DENNEY v. BDO SEIDMAN, L.L.P.

Docket Nos. 04-2654-CV(L), 04-2659-CV(CON), 04-2705-CV(CON), 04-2808-CV(CON).

412 F.3d 58 (2005)

Thomas DENNEY, on his own behalf and on behalf of all others similarly situated, R. Thomas Weeks, on his own behalf and on behalf of all others similarly situated, Norman R. Kirisits, on his own behalf and on behalf of all others similarly situated, TD Cody Investments, L.L.C., on their own behalf and on behalf of all others similarly situated, RTW High Investments, L.L.C., on their own behalf and on behalf of all others similarly situated, NRK Syracuse Investments, L.L.C., on their own behalf and on behalf of all others similarly situated, DKW Partners, on their own behalf and on behalf of all others similarly situated, DKW Lockport Investors, Inc., on their own behalf and on behalf of all others similarly situated, Donald A. Destefano, on his own behalf and on behalf of all others similarly situated, Patricia J. Destefano, on her own behalf and on behalf of all others similarly situated, DD Tiffany Circle Investments, L.L.C., on their own behalf and on behalf of all others similarly situated, Tiffany Circle Partners, on their own behalf and on behalf of all others similarly situated, Diamond Roofing Company, Inc., on their own behalf and on behalf of all others similarly situated, Kathryn M. Kirisits, on her own behalf and on behalf of all others similarly situated, Jeff Blumin, JB Hilltop Investments LLC, Kyle Blumin, KB Hoag Lane Investments LLC, Michael Blumin, MB St. Andrews Investments LLC, Fayetteville Partner and Laurel Hollow Investors, Inc., on their own behalf and on behalf of all others similarly situated, Plaintiffs-Appellees, v. BDO SEIDMAN, L.L.P., Pasquale & Bowers, L.L.P., Dermody, Burke and Brown, Certified Public Accountants, PLLC, Paul Shanbrom, Deutsche Bank AG and Deutsche Bank Securities, Inc., doing business as Deutsche Bank Alex Brown, a division of Deutsche Bank Securities, Inc., Defendants-Appellants, Jenkens & Gilchrist, a Texas Professional Corporation, Jenkens & Gilchrist, an Illinois Professional Corporation, Cantley & Sedacca, L.L.P., Paul M. Daugerdas, and Edward Sedacca, Defendants.

United States Court of Appeals, Second Circuit.

Decided: June 14, 2005.


Attorney(s) appearing for the Case

Michael R. Young (Michelle J. Nadel and I. Bennett Capers, of counsel), Willkie Farr & Gallagher LLP, New York, N.Y. for Defendants-Appellants BDO Seidman, LLP and Paul Shanbrom.

Seth C. Farber (Lawrence M. Hill, of counsel), Dewey Ballantine LLP, New York, N.Y. for Defendants-Appellants Deutsche Bank AG and Deutsche Bank Securities, Inc., doing business as Deutsche Bank Alex Brown, a Division of Deutsche Bank Securities Inc.

W. Ralph Canada, Jr. (David R. Deary, Jeven R. Sloan, Deary Montgomery DeFeo & Canada, LLP, Dallas, TX, Jeffrey H. Daichman, Kane Kessler P.C., New York, NY, Ernest Cory, Cory, Watson, Crowder & Degaris, Birmingham, AL, Joe Whatley and Othni Lathram, Whatleydrake, L.L.C., Birmingham, AL, of counsel), Deary Montgomery DeFeo & Canada, LLP, Dallas, TX for Plaintiffs-Appellees.

Before: LEVAL, CABRANES and KATZMANN, Circuit Judges.


JOSÉ A. CABRANES, Circuit Judge.

Defendants-appellants appeal from an order of the United States District Court for the Southern District of New York (Shira A. Scheindlin, Judge) denying their motion to compel arbitration based on the District Court's finding that the consulting agreements the parties entered into, each of which contained an arbitration clause, were "mutually fraudulent" and consequently unenforceable. Because we hold that the District...

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