Rakoff Sides With Russian Franchisee In Subway Award Row

By Joyce Hanson (December 8, 2021, 8:27 PM EST) -- The Subway sandwich chain can't shut down hundreds of Russian shops because the fast-food company and a franchisee didn't come to a mutual final agreement over an arbitral award, Manhattan federal Judge Jed Rakoff found Wednesday in an order vacating the award.

The senior district judge ruled that, despite a strong presumption under the U.S. Code in favor of a court's confirmation of an arbitral award within a year, the Federal Arbitration Act provides that a district court may vacate a final award if it finds that the arbitrators exceeded their powers or imperfectly executed them.

Judge Rakoff said the "fundamental...

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