Judge: Subway Illegally Took GI's Shops

DALLAS -- A civil judge in Dallas ruled late Wednesday that the real estate arm of the Subway sandwich chain violated the rights of an Army reservist when it stripped him of his two restaurants while the reservist was serving in Afghanistan.

Grant Walsh, an attorney for Leon Batie Jr., said the ruling settles the biggest legal issue in a case that has dragged on for more than two years - that the chain's real estate affiliate broke the law when it terminated leases at two Dallas Subway franchises without a court order.

The ruling by Judge Carlos Cortez, granting Batie's request for summary judgment, means this part of the case can proceed to the damages phase, Walsh said.

Subway could appeal, settle the case or let a jury decide damages in January.

"The significance of this ruling is that a judge has determined that Subway violated the Servicemembers Civil Relief Act," Walsh said.

He said that of 10 separate legal issues in the protracted case, "this was the No. 1, most important. It affects all of the others."

Attorneys for Subway Real Estate Corp. and the corporate parent of the chain, Doctor's Associates Inc., could not be reached for comment.

Walsh said the case has broad implications for other service members and said members of Congress are working to change the law "so this doesn't happen again."

"This is about Batie, but it's also about all of our men and women who are returning from overseas," Walsh said. "It's about how our soldiers sacrifice their civilian lives."