Browdy P.C. tries complex cases and defends them on appeal in state and federal courts across the United States.
Browdy P.C. tries complex cases and defends them on appeal in state and federal courts across the United States.
High-stakes business disputes for corporations, medium-sized businesses, and entrepreneurs — jury trials, bench trials, arbitrations, and mediations nationwide.
Sales and use tax, manufacturing/production exemptions, refund claims, apportionment, net operating losses, audits and assessments — against revenue departments across the country.
Securities and securities-related employment matters, including NASD/NYSE/FINRA controversies, fraud and unsuitable-investment claims, and broker raiding / non-compete disputes. About half the practice is devoted to securities defense and securities-industry employment issues.
Appellate advocacy in state and federal courts, including cases of first impression before the Illinois Supreme Court and state appellate courts.
Browdy P.C. is the Chicago law practice of Scott Browdy, founded in November 2011. The firm handles complex commercial litigation with a sub-specialty in tax controversies, representing clients in state and federal courts in over a dozen states. Since 2010, Browdy P.C.'s clients have realized savings and received refunds of over $400 million.
Scott Browdy is a partner at CTM Legal Group and founder and sole owner (since 2016) of Browdy P.C. He has over 25 years in complex commercial litigation — taxation controversies, securities, and employment matters — including jury and bench trials, arbitrations, self-regulatory organizations, mediations, and appellate courts nationwide.
Phone (312) 420-4552. Email sbrowdy@browdylaw.com. Highland Park / Chicago, Illinois. Scott Browdy will be the first chair on any matter that goes to trial or an appellate court, and your calls will always be answered the day you place them, usually within three hours or less.
Selected tax controversy results. Since 2010, Browdy P.C.'s clients have realized savings and received refunds of over $400 million.
Browdy P.C. defended a developer and retailers in suits alleging over $100 million in lost retailers' occupation and use tax. All claims were dismissed with prejudice. The dismissal was upheld by the Illinois Supreme Court in a case of first impression.
We represented an electrical utility that transmitted and distributed electricity throughout Maryland and sought a sales tax refund on transmission and distribution equipment under the production-activity exemption. The appellate court reversed and remanded for a refund determination.
The taxpayer filed refund claims for sales and use tax on thousands of room rentals at three hotels near Newark Airport, asserting it was a “permanent resident” of the rooms and therefore did not owe the tax. Shortly before the summary judgment hearing, the Division of Taxation conceded all but a small portion of the refund.
We filed refund claims on behalf of our client, arguing that machinery and equipment used to produce paint in-store was exempt from sales tax. On a stipulated record, the client received over 95% of the requested relief.
The New Jersey Division of Taxation disallowed over $60 million of our client's net operating losses. In a case of first impression, we recaptured over $40 million of the $60 million in disallowed NOLs on summary judgment.
Our client asserted that liquid nitrogen and hydrogen used in its float bath glass manufacturing process was exempt equipment. We did not prevail at trial, but obtained a complete reversal on appeal before the Circuit Court of Cook County. The case subsequently settled on favorable terms while on appeal to a separate appellate court.
Our client purchased a material handling and storage system that, in effect, operated as a mechanized warehouse. We argued that the system was real, rather than personal, property, and, therefore, not subject to use tax. The court ruled that much of the system qualified as real property and granted a substantial refund.
We represented one of the nation's largest power generators in a challenge to income-tax assessments issued by the Illinois Department of Revenue. In a case of first impression, Illinois disputed our client's conception of a “sale” of electricity, and attempted to collect over $40 million in unpaid tax, interest, and penalties. The case settled shortly before trial with a savings of over $20 million to our client.
We represented a Fortune 100 aerospace company in an audit dispute with the Georgia Department of Revenue. Georgia alleged that our client owed over $1 million in unpaid sales tax, based on purported leases of flight simulators in Atlanta. We demonstrated that most of the contested transactions were not taxable leases and settled the case for a small fraction of the amount originally demanded.
We represented three economic developers in a constitutional challenge to Illinois’ newly amended Freedom of Information Act. Acting under color of the FOIA statute, the Illinois Attorney General demanded access to highly confidential documents relating to taxpayers who enrolled in the state’s Retailers Occupation Tax incentive program. After extensive legal arguments in the Circuit Court, the Attorney General voluntarily dropped her demand for the documents.
Defended an engineering and technology firm in a sales tax audit by the Illinois Department of Revenue. Showed that nearly all sales at issue involved transfers of intangible property and/or were not genuine sales at retail. Settled the audit for a nominal amount, yielding a six-figure saving.
Counseled business owners who generated over $20 million in profits from the sale of a business and, after moving to Florida, were subjected to an Illinois income tax audit. Settled before trial for a small percentage of the proposed assessment.
Represented a company providing in-room television programs viewed by guests in Chicago hotels. The City of Chicago proposed a multi-million-dollar assessment; defended on the theory the client was not a direct seller to consumers and therefore not subject to Chicago's amusement tax. Settled for less than ten percent of the proposed assessment.
Obtained lengthy injunctions on behalf of Bank of America in an employee “raiding” case against UBS Financial and a team of brokers who managed over $2 billion in customer assets — one of the largest raiding cases ever brought in the Northern District of Illinois.
NASD arbitration in Atlanta; claimants asserted unsuitable investments, fraud, and failure to diversify during the technology bubble, with over $15 million in claimed out-of-pocket losses. After a three-week arbitration, all claims were dismissed.
NASD arbitration in Houston; fraud-related claims concerning WorldCom stock and options; claimants sought an eight-figure recovery. All claims dismissed with prejudice at trial.
NASD arbitration in Dallas; claimant alleged fraudulent research reports and buy ratings by Citigroup's lead telecom analyst Jack Grubman, claiming $6 million in damages. All claims dismissed after full hearing (spring 2006).
NASD arbitration in Pittsburgh; over $1 million claimed for alleged unauthorized trading and unsuitable investments. Although Lehman's broker was convicted on multiple felony counts based on related acts, all claims in the arbitration were dismissed after a hearing (fall 2004).
Represented a team of Morgan Stanley brokers accused of violating non-solicitation agreements and misusing proprietary information. Merrill Lynch's request for a preliminary injunction was denied, and the court adopted our proposed 20-page order nearly in its entirety.
Represented Smith Barney and a team of brokers accused by Wells Fargo of misappropriating trade secrets, violating confidentiality agreements, and breaching non-compete agreements. After a preliminary injunction hearing, all claims for injunctive relief were denied; the case settled on favorable terms before the mandatory NASD arbitration.
Obtained temporary restraining orders in the Northern District of Illinois and Illinois Chancery Court on behalf of JP Morgan against three brokers who misappropriated confidential information and violated non-compete and non-solicitation agreements. All three cases settled before mandatory NASD arbitration hearings.
Represented class plaintiff on appeal in which the broker-dealer sought dismissal and to compel arbitration under federal law. The Illinois Appellate Court rejected each of the broker-dealer's arguments, and the decision was ultimately affirmed by the Illinois Supreme Court.
Regulatory action in which a senior Smith Barney broker was charged with illegally distributing “hot” IPO shares to other broker-dealers. All charges were dismissed; the broker received only a letter of caution from the NASD's Department of Enforcement.
Represented one of the world's largest manufacturers and importers of artificial Christmas trees in an $11 million dispute with its U.S. distributor. After obtaining summary judgment on the distributor's core claims, settled favorably on the eve of trial.
Represented one of the largest U.S. construction contractors in a suit by an insurer to recover approximately $4 million in premiums allegedly owed on “retrospective” workers' compensation policies. All insurer claims were disposed of on summary judgment; the client's counterclaim was resolved favorably after the first day of jury trial.
Represented an environmental remediation contractor asserting claims for differing site conditions at one of the largest PCB remediation sites in the United States. Handled testimony from nearly all plaintiff and defense experts; after a month-long trial, the client received a multi-million-dollar award.
Represented a leading employment staffing agency in a non-compete and trade secret case against senior employees who resigned to open a Chicago office for a competitor. Secured five-month injunctions against the former employees and their new firm, including satisfaction of all contractual duties owed to the client.
Represented one of the nation's top legal recruiters in an action by his former employer, which terminated him without cause and then attempted to enforce a non-compete provision. All claims for injunctive relief were denied, and the case settled favorably shortly thereafter.
Partner at CTM Legal Group; founder and sole owner (since 2016) of Browdy P.C. Over 25 years in complex commercial litigation — taxation controversies, securities, and employment matters; jury and bench trials, arbitrations, self-regulatory organizations, mediations, and appellate courts nationwide.
Opened the Chicago office for a Texas-based tax litigation firm as part of a strategic alliance with an international tax consulting firm. Federal and state trials and appeals in over a dozen states; clients have realized savings and/or refunds of well over $100 million. Sole owner of Browdy P.C. since 2016.
Partner and leader of the litigation practice group; securities, taxation, and employment matters.
Shareholder in the securities and commodities litigation department; defended numerous seven- and eight-figure cases across the U.S. (fraud, unsuitable investments, regulatory violations, employment), including NASD and NYSE controversies and court trials.
Litigation associate and shareholder at a boutique Chicago litigation firm; securities defense and securities-related employment, plus tax, partnership, construction, corporate governance, and professional malpractice. Earlier, complex commercial litigation associate in Miami, FL.
University of Virginia, B.A. with honors and distinction (1987); Northwestern University, J.D. (1991). Court Admissions: State of Illinois; U.S. District Court for the Northern District of Illinois; Northern District of Florida; Southern District of Florida; District of Utah; Western District of Michigan; District of Nebraska; Eastern District of Missouri; Southern District of Ohio; U.S. Court of Appeals for the Eleventh Circuit.