How many discovery depositions are parties allowed in an Eos Worldwide arbitration?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) The following shall supplement and, in the event of a conflict with any law or rule, including but not limited to the AAA Commercial Arbitration Rules, shall govern any dispute submitted to arbitration. The parties shall select one (1) arbitrator from the proposed list of neutral arbitrators provided by the AAA who has at least five (5) years' experience in franchise and distribution law. If the parties are unable to agree upon an arbitrator, each party to the dispute shall have fifteen (15) days from the transmittal date of the proposed list in which to strike names objected to, number the remaining names in order of preference, and return the list to the AAA. If a party does not return the list within the time specified, all persons named therein shall be deemed acceptable. From among the persons who have been approved on both lists, and in accordance with the designated order of mutual preference, the AAA shall invite the acceptance of an arbitrator to serve. If the parties fail to agree on any of the persons named, or if acceptable arbitrators are unable to act, or if for any other reason the appointment cannot be made from the submitted lists, the process of submitting lists shall continue until a suitable arbitrator is selected. In all aspects of conducting the arbitration and in rendering his or her decision, the arbitrator shall enforce and apply the substantive laws of the State of Delaware for interpretation of this Agreement, without regard to choice of law rules. The parties may conduct one (1) seven-hour discovery deposition of the opposing party. Any
party wishing to take such a deposition must describe with reasonable particularity, in the notice of deposition, the matters to be inquired into at the deposition, and where we are the party being deposed, we must designate at least one designated representative who consents to testify on our behalf. No other discovery depositions shall occur, unless the arbitrator finds such additional depositions to be necessary after written request and an opportunity to be heard. Each party shall be permitted up to ten (10) interrogatories and reasonable requests for production of documents. Each party shall be entitled to file a motion to dismiss, a motion for summary judgment and reasonable motions in limine. The arbitrator shall permit a responding party a reasonable period of time to respond in writing to any such motions. The arbitrator shall apply the Federal Rules of Evidence at the hearings. The arbitrator's award shall include an award of pre-hearing interest from the date upon which any damages were incurred, and from the date of the award until paid in full, at a rate to be fixed by the arbitrator, but in no event less than one and one-half percent (1.5%) per month, or part of a month (unless a lower rate is required by law). The prevailing party shall be entitled to recover from the non-prevailing party all costs of arbitration, including, without limitation, the arbitrator's fee, interest, and costs of investigation pursuant to Section 20.14 below. In addition, the prevailing party shall be entitled to an award of its reasonable and necessary legal fees. The arbitration hearings shall be completed within one hundred and fifty (150) days of the filing of the arbitration demand, unless the arbitrator, for good cause, must extend this deadline.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, in the event of arbitration, each party is permitted one seven-hour discovery deposition of the opposing party. If a party wishes to take a deposition, the notice of deposition must describe the matters to be inquired into with reasonable particularity. If Eos Worldwide is the party being deposed, they must designate at least one representative who consents to testify on their behalf.
Additional discovery depositions are not permitted unless the arbitrator finds them necessary after a written request and an opportunity to be heard. Each party is also allowed up to ten interrogatories and reasonable requests for document production. Parties can file motions to dismiss, motions for summary judgment, and reasonable motions in limine, with the responding party given a reasonable time to respond in writing.
The arbitrator must apply the Federal Rules of Evidence at the hearings. The arbitration hearings should be completed within 150 days of filing the arbitration demand, unless the arbitrator extends the deadline for good cause. The arbitrator's award must include pre-hearing interest from the date damages were incurred, and from the award date until paid in full, at a rate fixed by the arbitrator, but not less than 1.5% per month, unless a lower rate is legally required. The prevailing party can recover all arbitration costs, including the arbitrator's fee, interest, and investigation costs, as well as reasonable and necessary legal fees, from the non-prevailing party.