Reforms to save CA businesses from ‘shakedown’ ADA suits gain support

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A member of the California Assembly Judiciary Committee has come out in support of a measure supported by tort-reform advocates that gives small businesses a window to fix claims alleging Americans With Disabilities Act (ADA) violations before lawsuits can be filed.

Assemblywoman Blanca Pacheco (D-Downey) expressed her support for Senate Bill 84, authored by Sen. Roger Niello (R-Fair Oaks), during a meeting earlier this month in Sacramento that included small business owners and representatives of the tort-reform groups California Citizens Against Lawsuit Abuse (CALA) and Civil Justice Association of California.

SB 84, which passed the state Senate last year, would need to pass the state Assembly by June in order to reach Gov. Gavin Newsom’s desk. The measure would bar construction-related accessibility claims from being initiated until small businesses are given a 120-day window to correct the alleged violations. The bill would also require that potential plaintiffs serve companies with a letter detailing the alleged violations, which are often technical height specifications and can amount to only fractions of an inch.

The measure, which would apply only to small businesses employing 50 or fewer employees, would immunize a defendant from being liable for statutory damages, attorney fees or court costs when violations are corrected within the designated time period, according to the Legislature’s analysis of the bill.

Victor Gomez, executive director of California CALA, said small businesses have been a constant target of predatory lawsuits that do little to improve accessibility in public places for the disabled.

“Beyond the burden on small businesses, legal system abuse costs every Californian $2,566.70 annually,” Gomez said in a statement emailed to the Southern California Record. “SB 84 represents a balanced approach to ending these shakedowns and promoting economic growth across the state while ensuring California's disability access laws work as intended.”

He added that California CALA is hoping the Assembly Judiciary Committee will advance the bill in order to provide business owners with protection from excessive litigation and potential costs that could lead to business closures.

Critics say construction-related ADA lawsuits can be filed over issues such as table heights and minor signage violations. Attorneys then attempt quick monetary settlements, which businesses may opt to pay if they can’t afford the costs of litigating the dispute.

Niello said his bill would benefit both businesses and the disabled.

“My intention is to protect the rights of the people with disabilities to have physical access while also protecting the rights of business owners to have meaningful access to justice, equal representation and protection from meritless litigation,” he said in a prepared statement.

Pacheco has signed on as a co-author of SB 84.

The bill also aims to bar plaintiffs from avoiding the notice requirement by seeking general discrimination damages based on an alleged ADA violation if the underlying claim relates to a business’s failure to follow physical accessibility standards under state law, according to the Legislature’s analysis of SB 84.

Other groups that have voiced support for the measure include the Imperial Valley Economic Development Corp. and the Independent Hospitality Coalition.