Key points:
  • Frequent lawsuits filed by serial litigants are burdening small businesses.
  • Owners of newer storefronts feel unfairly targeted as compliance can be complex and costly.
  • Disability advocates argue that such lawsuits are necessary to enforce the law.
Unexpected Legal BattlesRodrigo Nogueira was met with a surprise in April 2025 when lawyers contacted him out of the blue. They asked whether he needed legal assistance over a summons his restaurant, No More Cafe, received for violating Title III of the Americans with Disabilities Act (ADA). It was the first he had ever heard of it. The lawsuit listed 35 violations against No More Cafe, his restaurant in Manhattan’s East Village. One violation alleged that a table outside the restaurant was not ADA compliant, an accusation that puzzled Nogueira: the cafe had no outdoor tables. Other alleged violations were about infractions inside the restaurant, yet the plaintiff said he was unable to enter the restaurant.When Nogueira researched the lawsuit, he discovered that the plaintiff who sued him and his lawyer had filed complaints against dozens of small businesses. The attorney alone had filed more than 100 ADA lawsuits over the past nine years against storefront businesses. Nogueira said: “The [plaintiff] that’s suing me – he’s got many cases.” Costly Legal Fees and FrustrationFrustrated with the process, Nogueira sought to speak with other small business owners. He went through public court records and found nearby businesses that were also being sued for ADA noncompliance. “Every business owner I spoke to had opened within the last year or two,” Nogueira wrote on his website. “None of us had any idea how to navigate the federal court system. Most were already several thousand dollars into legal fees by the time we talked. Several of them did not realize they had been sued until the deadline to respond had already passed.”Other small business owners spoke to The Guardian also felt unfairly targeted by serial ADA litigants. This barrage of ADA litigation filed against storefront businesses has put the small business community at loggerheads with ADA plaintiffs and their lawyers.The Complexity of ADA ComplianceThe ADA, which became federal law in 1990, Title III was created to ensure that people with disabilities do not face “barriers to entry” and have access to spaces such as stores, restaurants, bars, and cafes. However, many people with disabilities and their advocates have long been frustrated by the lack of ADA compliance in restaurants, cafes, and shops.While the Department of Justice might take up corporate ADA noncompliance cases, there is no local regulation, and private litigation is often the only means that brings smaller businesses into compliance. Businesses are given some leeway in the ADA’s standards for accessible design, which can be confusing for business owners. Modifications should be made when they are “readily achievable” or “easy to do without much difficulty or expense,” according to the standards, and “a business with more resources is expected to remove more barriers than a business with fewer resources.”“The issue is around the ability for small business owners to make these changes,” said Jessica Walker, president and CEO of the Manhattan Chamber of Commerce. She testified last year in front of the New York city council on the impact that these serial ADA lawsuits can have on small business owners.Proposed SolutionsTom Stebbins, executive director of the Lawsuit Reform Alliance of New York (LRANY), suggested more sanctions against lawyers who file false claims. The bipartisan ADA 30 Days to Comply Act proposes a remediation period for businesses but has been met with criticism from disability advocates who fear it might set a dangerous precedent.When a business is served with an ADA lawsuit, there are only two options: fix the violations that are “readily achievable” and settle out of court, which could cost anywhere from $13,000 to $20,000 in legal fees (in Nogueira’s case, the plaintiff’s settlement offer was $8,000, which doesn’t include his own lawyer fees); or go to court, which could cost between $20,000 to $50,000 or more in legal fees. To business owners, being forced to hire a lawyer can feel unfair.When it comes to enforcement of other laws, such as health, fire safety, or liquor regulations, for example, hiring legal services is rarely necessary. Businesses work directly with the city to become compliant. Small business advocates say that the ADA’s enforcement system allows for lawyers who represent serial litigants to make thousands off of small businesses.

Source: The Guardian

Small Businesses Struggle with Frequent ADA Litigation
Small Businesses Struggle with Frequent ADA Litigation

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