Personal Best Karate, Inc. (PBK, Inc.) has emerged victorious after a five-year legal fight with its former franchise Personal Best Karate of Norwood, Inc.
The Norwood-based karate studio was owned by John and Barbara Mosca.
In 2011, the Mosca’s signed a franchise agreement with PBK, Inc. As part of the agreement, the parties resolved to settle any future legal disputes through binding arbitration.
According to court documents, in 2019 the Mosca’s accused PBK, Inc. of breaching the terms of their agreement. Following the accusation, the Mosca’s changed the name of their karate studio to Mosca Village Martial Arts.
Claiming that the Mosca’s accusation was simply a ruse to break away from the franchise agreement, PBK, Inc. demanded the parties submit the issue to an arbitrator.
The Mosca’s allegedly ignored all arbitration proceedings and, unsurprisingly, lost their case.
The arbitrator ordered the Mosca’s to cease all operations (per the agreement’s noncompete clause) and awarded PBK, Inc. $13,724.90 in damages.
About one month later, PBK, Inc. filed a complaint in Norfolk Superior Court seeking to confirm the arbitration award.
The judge confirmed the award, while disregarding the Mosca’s claim that the franchise agreement’s noncompete clause was unconscionable.
The Mosca’s appealed the superior court decision.
Apparently couple’s sole argue on appeal was that the superior court judge erred by ignoring their claim about the agreement’s “unconscionable” noncompete clause.
The Appeals Court affirmed the lower court’s decision, noting
The Moscas fail to cite any case law or record cites in support of their unconscionability claim, and resultingly, this claim does not rise to the level of appellate argument
The justices went on to affirm the arbitration award. The Appeals Court even ordered the Mosca’s to pay PBK, Inc.”s court costs and legal fees for their “frivolous” appeal.
The full opinion is attached below.