United States Sixth Circuit

In an action arising from plaintiffs' liabilities to the IRS for their participation in investments later found to be an abusive tax shelter, denial of defendants' motion for a stay pending arbitration of the dispute is affirmed where: 1) none of the defendants was a signatory to the written arbitration agreement, and their attempt to compel based on equitable estoppel failed; 2) in the absence of an applicable written agreement to arbitrate, Federal Arbitration Act section 3 was inapplicable in this case; and 3) thus, the circuit court was without jurisdiction to hear the appeal on an interlocutory basis.

Appellate Information

• Decided 04/09/2008
• Published 04/09/2008

Judges

• Before: DAUGHTREY and COOK, Circuit Judges;  VINSON, District Judge.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Douglas E. Whitney, McDermott, Will & Emery, LLP, Chicago, Illinois, for Appellants.  Paul M. De Marco, Waite, Schneider, Bayless & Chesley Co., L.P.A., Cincinnati, Ohio, for Appellees.   ON BRIEF:  Douglas E. Whitney, McDermott, Will & Emery, LLP, Chicago, Illinois, Russell S. Sayre, Taft, Stettinius & Hossister, LLP, Cincinnati, Ohio, Robert B. Craig, Taft, Stettinius & Hollister, LLP, Covington, Kentucky, Earle Jay Maiman, Thompson Hine, LLP, Cincinnati, Ohio, Richard J. Idell, Idell & Seitel, LLP, San Francisco, California, Donald L. Stepner, Adams, Stepner, Woltermann & Dusing, PLLC, Covington, Kentucky, for Appellants.  Paul M. De Marco, James R. Cummins, Stanley M. Chesley, Jean M. Geoppinger, Waite, Schneider, Bayless & Chesley Co., L.P.A., Cincinnati, Ohio, for Appellees.