In a Card My Yard arbitration, who is considered the 'Prevailing Party' and what are they awarded?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. In addition to any other remedy, the arbitrator will award the "Prevailing Party" their costs, fees, reasonable attorney's fees, expert witness fees, and the like that Party expended in preparation for and the prosecution of the case at arbitration. The Prevailing Party will be the Party that has obtained the greatest "net judgment" in terms of money or money equivalent. If money or money equivalent has not been awarded, then the Prevailing Party will be that Party that has prevailed on a majority of the material issues decided. The "net judgment" is determined by subtracting the smallest award of money or money equivalent from the largest award. If there is a mixed decision involving an award of money or money equivalent and equitable relief, or if the arbitrator deems it to be in the best interest of justice, the arbitrator using their reasonable judgment, will award the above fees to the Party that it deems has prevailed over the other Party. This award applies to all matters decided by the arbitrator, including matters concerning misrepresentation or fraud.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the "Prevailing Party" in an arbitration will be the party that obtains the greatest "net judgment" in terms of money or money equivalent. The "net judgment" is determined by subtracting the smallest award from the largest award. If no money or money equivalent is awarded, the prevailing party is the one that wins on a majority of the material issues decided.
In cases involving both monetary awards and equitable relief, or if the arbitrator believes it's in the best interest of justice, the arbitrator has the discretion to decide which party prevailed. This decision is based on their reasonable judgment.
The prevailing party is entitled to recover their costs, fees, reasonable attorney's fees, expert witness fees, and similar expenses incurred in preparing for and conducting the arbitration. This award applies to all matters decided by the arbitrator, including those concerning misrepresentation or fraud. This clause ensures that the party who substantially wins the arbitration is not unduly burdened by the costs of the legal process.