What happens if a claim that would constitute a compulsory counterclaim is not submitted in a Casiola arbitration proceeding?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) They shall each be bound to the limitation's periods set forth in Article 18.I. of this Agreement and that, in any arbitration proceeding, Franchisor and Franchisee must each timely submit, within the same arbitration proceeding, any claim that would constitute a compulsory counterclaim as such claims are defined and set forth under Rule 13 of the United States Federal Rules of Civil Procedure.
Any claim that is not submitted or filed as required shall be forever barred;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if a claim that would constitute a compulsory counterclaim under Rule 13 of the United States Federal Rules of Civil Procedure is not submitted in a timely manner during an arbitration proceeding, that claim will be permanently barred. This requirement applies to both Casiola and the franchisee.
This means that a Casiola franchisee must ensure that all relevant claims, including those that could be considered compulsory counterclaims, are presented during the arbitration. Failure to do so will result in the franchisee losing the right to pursue that claim in the future. This provision encourages both parties to bring all related disputes to the table during the arbitration process, promoting efficiency and finality in resolving conflicts.
This requirement is intended to streamline dispute resolution and prevent parties from raising related claims in separate proceedings after the initial arbitration has concluded. Franchisees should consult with legal counsel to identify any potential compulsory counterclaims they may have and ensure they are properly submitted within the arbitration proceeding to avoid losing their right to pursue them.