Are there any exceptions to the Business Associate's obligation to assist in litigation or administrative proceedings for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Assistance in Litigation or Administrative Proceedings.
Business Associate shall make itself, and any subcontractors, employees or agents, available to Covered Entity, at no cost to Covered Entity, to testify as witnesses, or otherwise, in the event of litigation or administrative proceedings being commenced against Covered Entity, its directors, officers or employees based upon a claimed violation of HIPAA, the HIPAA Regulations, the HITECH Act, the Privacy Rule, the Security Rule, or other laws relating to security and privacy, except where Business Associate or its subcontractor, employee or agent is a named adverse party.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a Business Associate is generally obligated to assist Degree Wellness in litigation or administrative proceedings at no cost to Degree Wellness. This assistance includes providing testimony as witnesses in cases related to violations of HIPAA, the HIPAA Regulations, the HITECH Act, the Privacy Rule, the Security Rule, or other laws concerning security and privacy.
However, there is a specific exception to this obligation. The Business Associate is not required to provide assistance if the Business Associate, its subcontractor, employee, or agent is named as an adverse party in the litigation or administrative proceedings. This means that if the Business Associate is directly involved in the legal action against Degree Wellness, they are not obligated to assist Degree Wellness in the matter.
This clause ensures that the Business Associate is available to support Degree Wellness in legal matters unless there is a conflict of interest due to the Business Associate's direct involvement as an opposing party. This is a standard practice to maintain fairness and avoid compromising the Business Associate's legal position when they are also a defendant or otherwise adverse to Degree Wellness's interests.