Is an arbitrator allowed to assess punitive damages in an Augusta Lawn Care arbitration?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator may not, under any circumstance, (a) stay the effectiveness of any pending termination of this Agreement, (b) assess punitive or exemplary damages, (c) certify a class or a consolidated action, or (d) make any award which extends, modifies or suspends any lawful term of this Agreement, or any reasonable standard of business performance that Augusta Lawn Care sets.
THE PARTIES HERETO AND EACH OF THEM EXPRESSLY WAIVE(S) ANY CLAIM FOR PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES, except that this waiver and limitation shall not apply with respect to (a) your obligation to indemnify Augusta Lawn Care pursuant to any provision of this Agreement, and/or (b) any claims Augusta Lawn Care brings against you and/or your guarantors for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, and any other cause of action under the Lanham Act and Augusta Lawn Care shall be entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law.
- 11.15.3 The parties hereto and each of them EXPRESSLY AGREE(S) THAT IN THE EVENT OF ANY FINAL DETERMINATION ADJUDICATION OR APPLICABLE ENACTMENT OF LAW THAT PUNITIVE MULTIPLE AND/OR EXEMPLARY DAMAGES MAY NOT BE WAIVED, ANY RECOVERY BY ANY PARTY IN ANY ARBITRATION OR OTHER FORUM SHALL NEVER EXCEED TWO (2) TIMES ACTUAL DAMAGES, except that AUGUSTA LAWN CARE may recover more than two (2)
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, an arbitrator is not allowed to assess punitive or exemplary damages. The FDD explicitly states that the arbitrator may not, under any circumstance, assess punitive or exemplary damages. This limitation is in place to protect both the franchisee and Augusta Lawn Care from excessive or unpredictable financial penalties during arbitration.
However, the document also states that the parties expressly waive any claim for punitive, multiple, and/or exemplary damages, except that this waiver does not apply to the franchisee's obligation to indemnify Augusta Lawn Care or any claims Augusta Lawn Care brings against the franchisee for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, and any other cause of action under the Lanham Act. In these specific cases, Augusta Lawn Care is entitled to receive an award of multiple damages, attorneys' fees, and all damages as provided by law.
Furthermore, the FDD addresses the scenario where a final determination or applicable law dictates that punitive damages cannot be waived. In such cases, any recovery by any party in arbitration or another forum will never exceed two times the actual damages, except that Augusta Lawn Care may recover more than two times actual damages in the aforementioned cases involving indemnity, unauthorized use of marks, confidential information, or claims under the Lanham Act. This provision sets a limit on potential punitive damages while also carving out exceptions where Augusta Lawn Care can seek greater recovery.