CA2: not proper to use ancillary jurisdiction against KPMG

For some reason, I didn’t post the 5/23 decision in which the Second Circuit reversed Judge Kaplan’s decision to use his ancillary jurisdiction to allow (upper middle class) criminal defendants to proceed civilly against their former employer breaching their agreement to pay their attorneys fees. Our earlier coverage was here.

Essentially the court holds:

While we do not exclude the possibility of a legitimate ancillary proceeding involving a non-party to the primary litigation, we believe that the requisite compelling circumstances will be rare, as the need for such a proceeding generally will be far less pressing than in cases involving parties already before the court.  In the present matter, the prejudice to KPMG is clear, and the need for the ancillary proceeding is entirely speculative.

Tnx. WCCPB.  That said, the indictment might be dismissed.  See here for that order.  See our earlier coverage here and here.