ROSENBACH v. DIVERSIFIED GROUP, INC.


39 A.D.3d 271 (2007)

833 N.Y.S.2d 78

GARY ROSENBACH et al., Respondents, v. DIVERSIFIED GROUP, INC., et al., Defendants, and KPMG LLP, Appellant.

Appellate Division of the Supreme Court of the State of New York, First Department.

Decided April 10, 2007.


Defendant KPMG cannot compel plaintiffs to arbitrate claims arising out of the allegedly fraudulent tax shelters at issue. KPMG is not a signatory to the Global Fund operating agreement containing the arbitration provision upon which it relies and, even if the doctrine of equitable estoppel were in theory available in this jurisdiction to enable a nonsignatory to compel signatories to an arbitration agreement to arbitrate, it would not avail KPMG in this matter since plaintiffs...

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