How is the 'net judgment' determined in a Card My Yard arbitration?
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 arbitrator in a dispute will award costs and fees to the "Prevailing Party." The Prevailing Party is defined as the party that obtains the greatest "net judgment" in terms of money or money equivalent.
The FDD specifies that the "net judgment" is determined by subtracting the smallest award of money or money equivalent from the largest award. If no money or money equivalent has been awarded, the Prevailing Party will be the party that prevailed on a majority of the material issues decided.
For a prospective Card My Yard franchisee, this means that in the event of an arbitration, the determination of who is the prevailing party, and therefore who is entitled to have their costs covered, will depend on a simple calculation based on the monetary awards made. If the decision involves both monetary and non-monetary relief, the arbitrator has the discretion to decide who prevailed and should receive the award of fees. This also applies to matters decided by the arbitrator, including those concerning misrepresentation or fraud.