Wednesday, January 10, 2007
The latest twist in the KPMG tax shelter saga: Federal District Judge Kaplan on Monday filed a 47-page brief in the Second Circuit defending his decision last summer to hold a separate civil proceeding to determine whether KPMG should pay the indicted 16 former KPMG partners' legal fees. Judge Kaplan argued that the unusual procedure was justified due to the exceptional nature of the case. For more discussion, see WSJ Law Blog: Judge Kaplan Takes His Plea to the Second Circuit.
Judge Kaplan filed the brief in response to the Second Circuit's invitation under FRAP 21(b)(4), which covers writs of mandamus and other extraordinary writs ("The court of appeals may invite or order the trial-court judge to address the petition or may invite an amicus curiae to do so. The trial-court judge may request permission to address the petition but may not do so unless invited or ordered to do so by the court of appeals.") (Hat Tip: Ira Shepard.)