Is mediation required before bringing a claim against Christies International Real Estate to court?
Christies_International_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
tual Limitation of Actions**. You agree to bring any Claims against us, if at all, within one (1) year of the occurrence of the facts giving rise to such Claims. The parties hereto agree that any Claims not asserted in an action filed within this period shall be time-barred, whether asserted as a claim, counterclaim, defense, or set-off.
- 18.7. Prior Notice of Claims. As a condition precedent to commencing an action for a Claim, you must notify us within thirty (30) days after the occurrence of the violation or breach, and failure to timely give such notice shall preclude any claim for damages.
- 18.8. Mediation. Except as otherwise stated in this Section 18, the parties agree to submit any claim, controversy or dispute arising out of or relating to this Agreement (and attachments) or the relationship created by this Agreement to non-binding mediation before bringing such claim, controversy or dispute to a court. The mediation will be conducted either through an individual mediator or a mediator appointed by a mediation services organization, experienced in the mediation of disputes between franchisors and franchisees, agreed upon by the parties. If the parties do not agree upon a mediator or mediation services organization within fifteen (15) days after either party has notified the other of its desire to seek mediation, the dispute will be mediated by the American Arbitration Association pursuant to its rules governing mediation, at our corporate headquarters in Illinois, or in such other city and state in which our corporate headquarters is then located, if we move such headquarters. The costs and expenses of the mediation services organization, including compensation of the mediator, will be borne equally by the parties. Each party will bear the costs of its own attorney's fees and travel, if any, for the mediation. If the parties cannot resolve the claim, controversy or dispute within ninety (90) days after conducting the mediation, either party may submit such claim, controversy or dispute to court under this Section 18.
Source: Item 23 — RECEIPT (FDD pages 54–177)
What This Means (2025 FDD)
According to Christies International Real Estate's 2025 Franchise Disclosure Document, mediation is generally required before initiating a lawsuit. Specifically, any claim, controversy, or dispute arising from the Franchise Agreement or the relationship it creates must first be submitted to non-binding mediation. This mediation aims to resolve issues between Christies International Real Estate and the franchisee before escalating to court.
The mediation process involves selecting a mediator experienced in franchise disputes, either individually or through a mediation services organization. If both parties cannot agree on a mediator within 15 days of a mediation request, the American Arbitration Association will appoint one, and the mediation will occur at Christies International Real Estate's corporate headquarters in Illinois. The costs for the mediation services organization and mediator are split equally between the parties, while each party covers their own attorney's fees and travel expenses.
However, there are exceptions to this mediation requirement. A party can bring an action to court without first mediating if the claim involves (i) monies owed, (ii) a request for injunctive relief, or (iii) issues related to the possession or disposition of real property. If mediation does occur and the parties cannot resolve the dispute within 90 days, either party is then free to pursue the claim in court. This clause ensures that certain urgent or specific types of disputes can be addressed in court without the delay of mandatory mediation.
Additionally, the FDD states that as a condition precedent to commencing an action for a claim, the franchisee must notify Christies International Real Estate within thirty (30) days after the occurrence of the violation or breach. Failure to provide timely notice will preclude any claim for damages. This notification requirement is separate from the mediation clause but is an important prerequisite to any legal action.