In Bor Restoration arbitrations, what costs and fees can the 'Prevailing Party' recover?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
aim and provide temporary restraining orders, preliminary injunctions, injunctions, attachments, claim and delivery proceedings, temporary protective orders, receiverships, and other equitable, interim, or final relief.
- e. Each Party consents to the enforcement of such orders, injunctions, etc., by any court having jurisdiction.
- f. The arbitrator will have subpoena powers limited only by the laws of the state in which our headquarters is then located
- g. In addition to any other remedy, the arbitrator has the right to award the "Prevailing Party" their costs, fees, reasonable attorney's fees, expert witness fees, and the like, which that Party expended in preparation for and the prosecution of the case at arbitration. The "Prevailing Party" is the Party that has obtained the greatest "Net Judgment" in terms of money or money equivalent. The "Net Judgment" is determined by subtracting the smallest award of money or money equivalent from the largest award.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the arbitrator in an arbitration case has the right to award the "Prevailing Party" certain costs and fees. Specifically, the prevailing party can recover their costs, fees, reasonable attorney's fees, expert witness fees, and the like. These recoverable expenses are those that the party spent in preparation for and during the prosecution of the arbitration case.
The "Prevailing Party" is defined as the party that obtains the greatest "Net Judgment" in terms of money or money equivalent. The "Net Judgment" is calculated by subtracting the smallest award of money or money equivalent from the largest award. If no money or money equivalent is awarded, the Prevailing Party is the one that prevailed on a majority of the material issues decided.
However, if there is a mixed decision involving both a monetary award and equitable relief, or if the arbitrator determines that justice requires it, the arbitrator has the discretion to award the fees to the party they deem has prevailed, using reasonable business and arbitrator's judgment. This allows the arbitrator flexibility in determining who should be considered the prevailing party and receive the associated cost and fee recovery.