Hawkins
Hawkins v. KPMG LLP
Opinion
Opinion
Patel, J.
MEMORANDUM & ORDER
Re: Motion to Remand; Motion to Compel Arbitration
Plaintiff William M. Hawkins III filed this action in California state court on July 15, 2005, alleging generally that defendants KPMG LLP, Harvey Armstrong and Quellos Group LLC fraudulently induced plaintiff to purchase a tax shelter which defendants knew to be illegal. Defendants removed the action to federal court on November 21, 2005 under 9 U.S.C. section 205 , which provides federal subject matter jurisdiction over lawsuits involving international arbitrations. Now before the court are plaintiffs motion to remand the action to state court and defendants’ motion to compel arbitration and stay the federal proceedings. Having considered the parties’ arguments and submissions, and for the reasons set forth below, the court enters the following memorandum and order.
BACKGROUND
Plaintiff is a Silicon Valley entrepreneur and the founder of two video game companies, Electronic Arts and 3DO. In 1996 plaintiff sold a quantity of stock, resulting in substantial capital gains. He turned to defendant KPMG LLP for help in minimizing the taxes he would have to pay on those gains. As set forth in a series of…