Bryan Ventures v. Gainor

Summary

Motions for stay and dismissal in case involving basis-shifting (BOSS) revenue transactions that the defendant used as tax shelter to protect capital gains revenue from taxation after the sale of the defendant's medical supplies businesses. The tax shelter, however, turned out to be illegal, and the defendant ended up having to pay $13M to the IRS, and sought to recover damages from those that had marketed the shelter.

The defendant requested a stay pending resolution of a federal case in Florida allegedly involving the same parties, witnesses, documents, and claims, some of which had settled in Florida, and which would allegedly have res judicata and collateral estoppel effect in the Georgia action, and would be dispositive of the Georgia action.

The plaintiff claimed that most of the parties in Georgia were not parties in Florida, and would not even be subject to jurisdiction in Florida; therefore, the Georgia issues would eventually have to be resolved anyway, and so judicial economy would not warrant a stay. Further, issue and claim preclusion would not apply without identity of parties.