Navigating the Challenges of Predatory ADA Litigation: A Small Business Owner’s Experience
As a small business owner based in Southern California, I am currently facing an unsettling and distressing situation that has become all too common for many entrepreneurs—predatory litigation targeting businesses under the Americans with Disabilities Act (ADA). After already having dealt with a lawsuit from a so-called “litigation mill” in the past, I find myself confronting a similar threat once again, and I am seeking guidance from anyone who has navigated this dilemma successfully.
Background: The First Lawsuit
A few years back, our business was sued by a predatory firm that specializes in filing lawsuits under the ADA. In order to resolve the issue, we opted to settle the lawsuit, paying the associated fees and hiring a professional ADA compliance company to rectify every item highlighted in the complaint. Following this remediation, we have made no changes to our website’s code, believing that we had fulfilled the necessary requirements for accessibility.
Current Situation: A New Claim
Recently, the same law firm has decided to pursue another lawsuit against us, albeit this time with a different plaintiff. Upon further investigation, I discovered that this new plaintiff is a known “serial filer,” a term used to describe individuals who frequently file such lawsuits against businesses, often in collaboration with litigation mills.
Adding to this distressing turn of events is the manner in which I learned about the lawsuit. I was not directly served; rather, the complaint was sent to my boyfriend’s personal email address by an advertising firm—without any accompanying case number. This unorthodox notification has left me questioning the validity of their actions.
Our Efforts
Despite this turmoil, I am proud to share that our website currently boasts a 100% score on Google Lighthouse and reports zero issues on axe DevTools, affirming its compliance with accessibility standards. Additionally, I have even received a letter from a visually impaired customer attesting to the site’s functionality and user-friendliness.
Unfortunately, our business has been severely impacted by the COVID-19 pandemic. We have closed most of our locations and are now burdened with $500,000 in Economic Injury Disaster Loan (EIDL) debt. With limited financial resources available, the prospect of settling this new lawsuit is daunting. My attorney has suggested that we may need to settle again simply to make this issue disappear, but the reality is that we lack the funds to do so. I have expressed to my lawyer that we are effectively “judgment proof,” as the government holds priority over our assets due to the EIDL loan, leaving us with no available profit from which to pay this claim.
Seeking Advice
In light of this ongoing battle, I am reaching out to the community for support. Specifically, I would appreciate any insights on the following:
- Has anyone successfully leveraged a prior settlement or remediation to have a second lawsuit dismissed by the same firm?
- Given the significant EIDL loan and the status of our struggling business, have others found success in arguing “judgment proof” to discourage further litigation from these firms?
I feel increasingly overwhelmed by the situation, as it appears that compliance with accessibility standards does not prevent relentless legal challenges. I am eager to hear from fellow small business owners who have faced similar battles. Your experiences and advice could make a meaningful difference in navigating this crisis.
For any small business owners who have endured similar predicaments and more, know that my heart goes out to you as we all seek to persevere in these challenging times. Together, let’s continue to support one another in the face of adversity.
One Comment
Thank you for sharing such a candid and detailed account of your experience. Predatory ADA litigation is a troubling phenomenon that can drain the resources and morale of small businesses, especially when they are already facing economic hardships. Your proactive steps—ensuring website accessibility compliance and seeking expert advice—are commendable.
Regarding leveraging prior settlements, some courts have dismissed cases when the defendant can demonstrate substantial compliance or overturn meritless claims, particularly if proof of accessibility is well-documented, as in your Lighthouse and axe DevTools reports. However, these cases often depend heavily on specific circumstances and legal strategies. Consulting an attorney experienced in ADA litigation and predatory practices can help craft a defense that emphasizes good-faith compliance and the potential bad faith of serial filers.
As for being “judgment proof,” this can sometimes serve as a deterrent, but courts and filing agencies may still pursue enforcement, especially if they believe there are assets or future income. Documenting all compliance efforts and communications can be valuable should the matter escalate further.
Lastly, engaging in advocacy and raising awareness about the tactics used by litigation mills can help inform policymakers and inform the business community so that small businesses are better protected. Participating in or supporting efforts to reform ADA-related litigation laws could be a long-term solution to reduce such predatory tactics.
Your resilience and proactive approach are admirable; staying informed and connected with others who face similar challenges will be vital as you navigate forward. Wishing you strength and success in overcoming these hurdles.