San Antonio Subway franchisee files for bankruptcy following court loss in manager’s murder case

River Sub LLC, a Subway franchisee in San Antonio, has filed for bankruptcy following an appeals court ruling that left the company liable for nearly $3 million in damages related to the 2020 murder of restaurant manager Marisela Cadena. The company’s Chapter 11 filing, made on Thursday, follows a recent affirmation by the 4th Court of Appeals of a $2.97 million arbitration award granted to Cadena’s heirs.

Cadena was killed by her abusive ex-boyfriend, Andrew Munoz, on February 28, 2020. Munoz, who had previously kidnapped and threatened Cadena, committed the murder at a South Side Subway location where she was working alone. Cadena’s family filed a wrongful death lawsuit against River Sub in 2021, alleging negligence on the part of the franchisee, which had failed to provide adequate security or allow Cadena to transfer to a safer location.

The arbitration award was issued by former judge Carlos Cortez in April 2023. He found that while Munoz was primarily responsible for Cadena’s death, River Sub’s negligence significantly contributed to the tragic outcome. River Sub challenged the award, claiming bias due to Cortez’s social media posts. However, the 4th Court of Appeals dismissed these claims, stating that the posts were unrelated to the case.

Following the court ruling, River Sub’s bankruptcy filing triggers an “automatic stay,” halting further legal actions against the company. Mark Fassold, attorney for Cadena’s family, criticized the move as an attempt to evade responsibility. He expressed skepticism about River Sub’s intentions, suggesting that the company might use bankruptcy to shield its assets while continuing operations.

The franchisee’s insurer also sought a federal court declaration in January that it was not obligated to cover the damages. River Sub’s bankruptcy petition, filed under a small-business subchapter, lists assets and liabilities each in the $1 million to $10 million range. The company, which once operated 69 locations, has seen a decline due to market saturation and the pandemic. It reported a net loss of over $149,000 on approximately $12 million in revenue for the first five months of the year.

A bankruptcy court hearing is scheduled to address emergency motions, including requests for employee wage payments and utility services.