'Footlong' sandwich settlement is thrown out: U.S. court
Send a link to a friend
[August 26, 2017]
By Jonathan Stempel
(Reuters) - A U.S. appeals court on Friday
threw out a class-action settlement intended to resolve claims that the
Subway sandwich chain deceived customers by selling "Footlong" subs that
were less than a foot long.
The 7th U.S. Circuit Court of Appeals in Chicago called the settlement
"utterly worthless," and said the customers' lawyers were not entitled
to attorney's fees for convincing Subway it was better to make the case
go away than fight.
"A class action that seeks only worthless benefits for the class and
yields only fees for class counsel is no better than a racket and should
be dismissed out of hand," Circuit Judge Diane Sykes wrote for a
three-judge panel. "That's an apt description of this case."
Lawyers at DeNittis Osefchen and Zimmerman Law Offices, which
represented the customers, did not immediately respond to requests for
Subway has more than 44,000 locations worldwide, and is operated by
Doctor's Associates Inc.
A spokesman said Subway was pleased the court recognized that "the
Subway brand did not misrepresent its product. We stand behind our
commitment to quality."
The litigation began after Australian teenager Matt Corby in January
2013 posted a Facebook photo showing a Footlong sandwich he bought was
only 11 inches long, not 12.
In February 2016, a Wisconsin federal judge approved a settlement
requiring Subway to adopt quality control measures, consistent with "the
realities of baking bread," to ensure that its six- and 12-inch
sandwiches were that length.
But a prominent class-action critic, Ted Frank, said this merely
codified practices Subway adopted soon after Corby's photo went viral.
[to top of second column]
Subway founder Fred DeLuca poses in a Subway branch in central
London January 26, 2012. U.S. REUTERS/Stefan Wermuth
He said it made no sense to award $520,000 to the customers' lawyers, plus
$5,000 of "incentive" awards to 10 plaintiffs, for settling.
Subway has acknowledged the "media frenzy" helped drive its decision to settle.
But Sykes noted that "short" sandwiches contained no less food by weight, and
that even now some sandwiches might be shorter than advertised.
"The settlement acknowledges as much when it says that uniformity in bread
length is impossible due to the natural variability of the bread-baking
process," Sykes wrote.
"Contempt as a remedy to enforce a worthless settlement is itself worthless,"
she added. "Zero plus zero equals zero."
The 7th Circuit has jurisdiction in Illinois, Indiana and Wisconsin. Frank said
he hoped other courts follow its lessons.
"This is exactly the opinion we were hoping for," Frank said in an interview.
"It affirms the principle that when attorneys bring class actions to benefit
only themselves, it's an abuse of the system, and courts should not tolerate
The case is In re: Subway Footlong Sandwich Marketing and Sales Practices
Litigation, 7th U.S. Circuit Court of Appeals, No. 16-1652.
(Reporting by Jonathan Stempel in New York; editing by Diane Craft and Cynthia
[© 2017 Thomson Reuters. All rights
Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.