In Ella Cafe mediations, can information disclosed by either party be used in subsequent litigation?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) The parties acknowledge that any information disclosed by either party in mediation may only be used for those purposes and may not be used in any following litigation.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, any information disclosed by either party during mediation is restricted to those purposes only and cannot be used in any subsequent legal proceedings. This encourages open and honest communication during mediation, as neither party needs to fear that their disclosures will be used against them later in court.
This protection of information is a common practice in mediation, as it fosters a more collaborative environment for resolving disputes. However, the agreement to mediate does not apply to disputes relating to past due amounts owed to Ella Cafe, the Marks, Copyrighted Works, or Ella Cafe's Confidential Information.
Furthermore, Ella Cafe and the franchisee retain the right to seek temporary restraining orders and preliminary injunctive relief in court, regardless of the mediation agreement. This ensures that either party can take immediate legal action to protect their interests if necessary.