Equitas Disability Advocates, LLC v. Daley, Debofsky and Bryant, P.C.

177 F. Supp. 3d 197, 2016 U.S. Dist. LEXIS 40644
CourtDistrict Court, District of Columbia
DecidedMarch 29, 2016
DocketCivil Action No. 2015-0611
StatusPublished
Cited by11 cases

This text of 177 F. Supp. 3d 197 (Equitas Disability Advocates, LLC v. Daley, Debofsky and Bryant, P.C.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equitas Disability Advocates, LLC v. Daley, Debofsky and Bryant, P.C., 177 F. Supp. 3d 197, 2016 U.S. Dist. LEXIS 40644 (D.D.C. 2016).

Opinion

MEMORANDUM OPINION

RANDOLPH D: MOSS, United States District Judge

Plaintiff Equitas Disability Advocates, LLC was formerly engaged in the practice of law. Dkt. 2-4 at 23 (Abeles Aff. ¶ 2). Its affairs are being wound up by its only remaining principal, Brian Abeles. Id Defendant Jonathan M. Feigenbaum is a Boston lawyer, Dkt. 16-2 at 1 (Feigenbaum Aff. ¶ 3), and Defendant Daley, Debofsky & Bryant, P.C. (“DDB”) was an Illinois law firm until it was dissolved by the Illinois Secretary of State in 2013, Dkt. 2 at 4. This case arises out of an arbitration regarding legal fees that Feigenbaum and DDB (“Defendants”) purportedly owed Equitas based on two fee-sharing agreements.

Presently before the Court are Equitas’s motion to vacate the arbitration award, which was pending when Defendants removed this action from the D.C. Superior Court, Dkt. 2-4 at 4; Equitas’s motion to remand the case to the. Superior Court, Dkt. 14; and Defendants’ motion to confirm the arbitration award, Dkt. 17. Equi-tas contends that this case must be remanded because the parties’ agreements specify that D.C. law governs and that the arbitration will be held in D.C., and under D.C.’s Revised Uniform Arbitration Act (“DCRAA”), the Superior Court has “exclusive jurisdiction” to enter judgment on an arbitration award when the “agreement to arbitrate provides] for arbitration in the District of Columbia.” D.C. Code §§■ 164426(b), 16-4401(5); see Dkt. 14-1. Equitas also contends that it is entitled to vacatur of the arbitration award under the DCRAA because the arbitrator improperly denied a postponement of the arbitration proceedings. Dkt. 2-4 at 19. Defendants respond that the “choice of [D.C.] law [in the agreements] was only intended to govern any ... disputes arising from the underlying agreements between the parties” and does not affect “the governing law for confirmation of or challenge to any arbitration award.” Dkt. 15 at 5. In Defendants’ *200 view, the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1 et seq., governs such proceedings and, under the FAA, Equitas’s motion to vacate is untimely. Dkt. 16-1 at 3-4. Defendants further contend that irrespective of whether the FAA or. the DCRAA applies, the arbitrator’s denial of a postponement withstands scrutiny and, accordingly, the motion to confirm must be granted. Id. at 5-17. .

For the reasons that follow, Equitas’s motions to remand the case, Dkt. 14, and to vacate the arbitration award, Dkt. 2-4 at 4, are DENIED, and Defendants’ motion to confirm the arbitration award, Dkt. 17, is GRANTED.

I. BACKGROUND

A. The Agreements

Brian Abeles previously worked in the disability-insurance industry as an insurance broker, benefits consultant, and claims consultant, which enabled him to amass over 100,000 pages of industry documents providing insight into theories of recovery for disability-insurance claimants. Dkt. 2-4 at 31-32. Although Abeles is not a lawyer, id. at 23 (Abeles Aff. ¶ 3), he believed that access to these documents, known as “the Archive,” could be useful to disability-insurance lawyers and their clients, id.- at 31-32. He thus sought to partner with lawyers who could use the Archive to pursue recoveries for their clients. Id. at 32. Abeles ultimately co-founded the D.C. law firm Fulcrum Law Group, LLC, with attorney Joshua Rose. 1 Id. at 31. Fulcrum is the predecessor-in-interest of Plaintiff Equitas. Id. at 34 n.4. Fulcrum entered into two agreements with Defendants Feigenbaum and DDB in May and June of 2008, to which Equitas later became a party. See Dkt. at 9-2 at 25-63. Pursuant to the Strategic Alliance Co-Counsel Agreement (“SACCA”) and the Fulcrum-Alliance Archive Sublicense Agreement (“FAASA”), Defendants obtained access to the Archive and to consultant and/or co-counsel services in exchange for a percentage of the fees recovered in specified cases. See id.-, Dkt. 2-4 at 31, 33. The SACCA included choice-of-law and arbitration clauses:'

(g) Governing Law; Dispute Resolution. This Agreement shall be deemed to have been entered into under the laws of the District of Columbia, and the rights and obligations of the parties hereunder shall be governed and determined according to the laws of said state without giving any effect to conflict of laws. All disputes arising under or in connection with this Agreement or involving the interpretation, performance or breach of this Agreement will be finally settled by final and binding arbitration administered by and in accordance with the then existing [Judicial Arbitration, Mediation, and ADR Services (“JAMS”) ] Streamlined Arbitration Rules and Procedures[ ] (the “Rules of Arbitration”) by a single arbitrator appointed in accordance with the Rules of Arbitration. Any such arbitration shall be held in Washington, DC, unless the parties hereto mutually agree in writing upon some other location for arbitration. There shall be no consolidation of this arbitration with any other dispute or proceeding involving third parties. The provisions of this Agreement shall prevail in case of inconsistency between the Rules of Arbitration and this Agreement. Judgment may be entered into in any court of competent jurisdiction to en *201 ■force any final decision by the arbitrators.

Dkt. 9-2 at 39. The FAASA included similar provisions, which are, for purposes of this case, materially indistinguishable from the SACCA provisions. 2 Id. at 57.

B. Arbitration Proceedings

On December 20, 2013, Equitas, represented by the law firm Zuckerman Spaeder, demanded arbitration against Defendants pursuant to the SACCA and FAASA, alleging breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, and fraud, and seeking return of all Archive documents. 3 Dkt. 2-4 at 38-39; id. at 24 (Abeles Aff. ¶9). Equitas alleged that DDB and Feigenbaum had failed to pay Equitas its share of the fees earned in cases allegedly covered by the SAC-CA and FAASA. Id. at 33. An arbitrator was assigned on February 6, 2014. Id. at 45.

After a hearing on May 20, 2014, the arbitrator dismissed Equitas’s claims for unjust enrichment and fraud for failure to state a claim. Id. at 8; Dkt. ■ 16-3 at 3. Subsequent to briefing on the construction of the parties’ agreements, the arbitrator issued a decision on August 6, 2014, concluding that there remained material questions of fact with' respect to Equitas’s claims for breach of contract and breach of the covenant of good faith and fair dealing. Dkt. 2-4 at 8. The arbitrator explained that Defendants were asserting a unilateral-mistake defense based on the deletion of a key sentence limiting the scope of the cases covered from a prior draft of the SACCA and that the question of who was responsible for the sentence’s deletion “cannot be resolved on the papers.” Dkt. 16-3 at 3.

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Bluebook (online)
177 F. Supp. 3d 197, 2016 U.S. Dist. LEXIS 40644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equitas-disability-advocates-llc-v-daley-debofsky-and-bryant-pc-dcd-2016.