Carlisle: A 'Hollow Victory'?
3 Pages Posted: 2 Jun 2009 Last revised: 11 Sep 2015
Date Written: June 1, 2009
Arthur Andersen LLP v. Carlisle is the first investor suit involving a failed Son-of-BOSS tax shelter to reach the Supreme Court. Although the Court rests its decision on procedural grounds under the Federal Arbitration Act, the case offers a tantalizing glimpse into the structure of the shelter transaction and the relationships between the various participants. This comment argues that the primary impact of the Court’s decision will be to invite tactical maneuvers by litigants seeking to delay litigation and avoid discovery.
Keywords: tax shelter, COBRA, Son-of-BOSS, arbitration, jurisdiction, fraud, professional responsibility, fee sharing, stock warrants, Carlisle, Curtis, Andersen, Bricolage, Clearmeadow, Tigers Eye, tax shelter promoter
JEL Classification: K34
Suggested Citation: Suggested Citation