Legal Battle Tackles Alleged ADA Misuse and ‘Shakedown’ Suits Targeting Small Businesses

Los Angeles and San Francisco are embroiled in a legal dispute revolving around a law firm that has allegedly been targeting small businesses with boilerplate ‘shakedown’ suits. The cities claim that these suits are dressed up as disability access cases and are looking to a state appeals court to help fight back.

The target of this legal fight is the Potter Handy LLP law firm, with claims surfacing that it’s using its power to exploit small businesses, seeking a payout rather than improving access. This thinly veiled predation has not gone unnoticed, with allegations of false ‘tester’ allegations filed under supposed plaintiffs who may not have even visited the establishments in question.

According to critics, these harsh tactics infringe upon the California Business & Professions Code Section 6128, which pertains to misdemeanor crimes. By this view, the people involved in these shakedown schemes should be held accountable with criminal action. However, the question of a criminal response is yet to be decided.

Proponents argue these lawsuits serve to expose accessibility deficiencies and rectify the situation for disabled patrons, while detractors see it as a calculated ploy to intimidate businesses and secure settlements.

The escalated legal dispute brings to light the larger issue of potential misuse of the Americans with Disabilities Act and its state equivalents, throwing the spotlight on the fine balance between advocating for accessibility rights and preventing predatory lawsuits.

While the court is set to make a ruling in the next 90 days, it’s clear that the fallout from this case could have far-reaching implications for businesses and the wider legal sector. It sets a challenging but necessary precedent for how issues surrounding disability rights and access lawsuits should be handled in the future.

Read more about the ongoing legal dispute here.