Dixon Law v. Powell

District Court, District of Columbia·Decided September 2, 2026·No. Civil Action No. 2026-1101·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

DIXON LAW, et al.,

Petitioners, v. Civil Action No. 26-1101 (JEB)

ERIC POWELL, et al., Respondents.

MEMORANDUM OPINION

Should an arbitrator’s failure to disclose to the parties the fact that she was a co-signatory on an amicus brief with one of the parties’ experts result in vacatur of the award? How about if the amicus engagement occurred after she had made her merits ruling and she had early on explained her professional relationship with the expert? Petitioners Dixon Law and Eric Dixon (jointly “Dixon”) think so and thus seek to vacate an arbitral award in a legal-malpractice case under the Federal Arbitration Act, 9 U.S.C. § 10(a), and the District of Columbia Revised Uniform Arbitration Act, D.C. Code § 16-4423. Respondents Eric Powell and Richard Gray think otherwise, and they have the better of the argument. The Court will thus confirm the award. I. Background A. Malpractice Dispute Respondents Powell and Gray hired Petitioners to assist in the sale of their clothing company. See ECF No. 8-1 (Engagement Agreement) at 1. Specifically, they wanted Dixon to ensure that they held a valid, perfected security interest that would protect their ability to collect

on the purchase price. See ECF Nos. 5-1 (Declaration of Eric Powell), ¶ 2; 5-2 (Declaration of Richard Gray), ¶ 2. In their telling, Dixon instead obtained collateral that was either valueless or not properly perfected due in part to filing errors. See ECF No. 5-3, Exh. 5 (Summary Disp.) at 23–24; Powell Decl., ¶ 2; Gray Decl., ¶ 2. The buyer never paid up, see Summary Disp. at 12– 16, so Powell and Gray sued Dixon for professional negligence in federal district court in Colorado, where they alleged a “substantial part” of the events transpired. See ECF No. 5-3 (Declaration of Peter W. Ito), ¶ 2; Powell v. Dixon Law, LLC, No. 24-3318, ECF No. 1 (Compl.), ¶ 22 (D. Colo. Nov. 27, 2024). Dixon then moved to dismiss based on the arbitration clause in their agreement, and Powell and Gray acquiesced. See Ito Decl., ¶ 3; see also Engagement Agreement, ¶ 14.

In January 2025, the parties began binding arbitration before the Washington, D.C., office of JAMS (formerly known as Judicial Arbitration and Mediation Services), consistent with their contract. See Ito Decl., ¶¶ 3–4; ECF No. 4 (Dixon Am. Pet.), ¶ 12; Engagement Agreement, ¶ 14. Dixon proposed appointing retired federal bankruptcy judge Joan N. Feeney as arbitrator, and Powell and Gray agreed. See Ito Decl., ¶ 4; Dixon Am. Pet., ¶ 12; ECF No. 5-3, Exh. 2 (Appointment of Arbitrator).

After briefing and discovery, see ECF No. 5-3, Exh. 4 (Scheduling Order); Dixon Am.

Pet., ¶ 13, Judge Feeney granted summary disposition in favor of Powell and Gray, see Summary Disp. at 40–49, and held an evidentiary hearing on the damages amount. See Ito Decl., ¶ 15. On November 4, 2025, she entered an interim award of $758,554, plus reasonable attorney fees, costs, and disbursements. See ECF No. 5-3, Exh. 6 (Interim Award) at 31. Per her instructions, Powell and Gray then moved for those remaining sums plus interest. See ECF No. 8-5 (Mot. for Fees, Costs, and Disbursements) at 16; id. at 14 n.6 (referring to separate motion for interest).

On April 27, 2026, Judge Feeney issued a final award of (1) $758,554 in damages; (2) $554,000 for attorney fees; (3) $108,322.97 for costs and disbursements; (4) $213,132.28 in prejudgment interest; and (5) post-judgment interest to accrue until payment of the award. See ECF No. 5-3, Exh. 7 (Final Award) at 14–15. She later corrected the amount of costs, adjusting it down to $108,042.12 (about $300 less) in an amended award dated May 5, 2026. See id., Exh. 9 (Am. Final Award) at 15. The Amended Final Award totaled $1,633,728.40. Id.

B. Disclosure Dispute What matters more than those sums are the disclosures that Judge Feeney made during the proceedings. At the outset, she completed a JAMS disclosure form in which she noted that “JAMS neutrals regularly engage” in professional activities and that it was possible that someone “connected with this proceeding” had overlapped with her at such events. See ECF No. 5-3, Exh. 3 (Disclosures) at 3. Later, upon learning at the preliminary status conference that Powell and Gray had retained professor and retired bankruptcy judge Bruce A. Markell as an expert witness, Judge Feeney disclosed that she had interacted professionally with him in the past. See Ito Decl., ¶¶ 6–7; Dixon Am. Pet., ¶ 16; ECF No. 5-3, Exh. 10-A (Declaration of Joan N. Feeney), ¶ 1; see also Scheduling Order at 1 (memorializing disclosure). She also declined an invitation to participate in an upcoming panel with Judge Markell in light of the pending arbitration. See ECF No. 8-3 (Webinar Correspondence) at 2.

Months later, on November 5, 2025 — the day after she issued the interim award —

Judge Feeney received an email from a professor asking her and three other retired bankruptcy judges to join a brief as “named party amici” in a consumer-bankruptcy case before the U.S. Supreme Court. See Feeney Decl., ¶ 3. Only after she expressed interest did she learn that Judge Markell might sign on, too. Id. At that point, Judge Markell notified Powell and Gray’s counsel

about the brief. Id.; ECF No. 8-4 (Amicus Correspondence). He also informed the professor of his role in the arbitration, copying Judge Feeney on the email. See Feeney Decl., ¶ 3.

In late December, Dixon discovered the submitted brief through a Google search. See Dixon Am. Pet., ¶ 23; see also ECF No. 8-7 (Mot. to Disqualify), Exh. 5 (Amicus Brief). Petitioners soon moved to disqualify Judge Feeney, alleging that she had failed to disclose “her work with Judge Markell on the amicus brief” while “preparing to rule on the $750,000 fee and costs requests (including Judge Markell’s fees) this week.” Mot. to Disqualify, ¶ 16. A member of the National Arbitration Committee (NAC) ultimately recommended denial of the Motion, writing in his report that “[t]here was no material contact between Feeney and Markell, and Feeney made robust disclosures about her relationship with Markell early in the case.” ECF No. 5-3, Exh. 10 (Chernick Report) at ECF pp. 161–64. NAC adopted his recommendation, see id. at ECF p. 162, and Judge Feeney went on to issue the final award.

Both parties timely filed suits with this Court, which consolidated the cases. See Minute Order of May 19, 2026. Not surprisingly, Dixon seeks vacatur under the FAA and the D.C. RUAA, while Powell and Gray request confirmation under the same. See generally Dixon Am. Pet.; ECF No. 6 (Powell Mot.); see also 9 U.S.C. §§ 9, 10 (providing for judicial confirmation and vacatur of arbitral awards); D.C. Code §§ 16-4422 to -4423 (same); Engagement Agreement, ¶ 12 (“Judgment on the award may be entered by any court of competent jurisdiction.”). II. Legal Standard In enacting the FAA, 9 U.S.C. § 1 et seq., Congress “replace[d] judicial indisposition to arbitration with a ‘national policy favoring it and placing arbitration agreements on equal footing with all other contracts.’” Hall St. Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576, 578 (2008) (quoting Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440, 443 (2006)) (cleaned up).

The FAA establishes “an alternative to the complications of litigation,” Revere Copper & Brass Inc. v. Overseas Private Inv. Corp., 628 F.2d 81, 83 (D.C. Cir. 1980), and provides for “expedited judicial review to confirm, vacate, or modify arbitration awards.” Hall St. Assocs., 552 U.S. at 578.

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