Chinatown braces for potential wave of lawsuits against small businesses

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Moji Saniefar, an attorney representing 14 San Francisco trade groups, is deeply concerned that small businesses in the city are about to face sudden lawsuits that could put them out of business over minor violations of the landmark disability law.

“San Francisco just got bombed by these Americans with Disabilities Act lawsuits,” she said. “It’ll just open the gate again.”

Saniefar closely followed Langer v. Kiser in the U.S. Court of Appeals for the Ninth Circuit, in which a disabled person named Chris Langer sued a small business because his parking was inaccessible to his van and ramp. The case could set a precedent for similar lawsuits in the future.

However, the result was not what Sanifar had hoped for.

A three-judge panel in federal court sided with the disabled plaintiff, leaving the small business owner’s losing defendant with little choice. What keeps Saniefar awake at night is that the ruling could spur new lawsuits against small businesses, in particular from a small number of firms that are filing an extraordinary amount of lawsuits.

“We are concerned that we will again face a flood of lawsuits,” Saniefar said.

In other words, it has already happened.

“Profitable business”

The Americans with Disabilities Act of 1990 is a federal law passed to protect people from discrimination or lack of space in public places. This has led to major changes in American society, from adding closed captioning to television programs to promoting the growth of service animals.

But since the pandemic, ADA violation lawsuits have skyrocketed in San Francisco. Hundreds of small businesses, including numerous immigrant-owned businesses in Chinatown, are receiving legal letters citing their uneven entrances, narrow hallways, or tall counters that may not comply with the letter of the law for technical reasons or because their buildings have been built over decades. before things like wheelchair ramps.

Saniefar’s father, an Iranian immigrant who owns a restaurant in Fresno, was also the target of these lawsuits due to allegations of lack of access, prompting her to join the fight.

She said that due to the complex legal system, potentially high fees, and language barriers, many immigrant business owners choose to take jobs. And in areas like Chinatown, many buildings are over 100 years old, making building retrofits to comply with ADA laws unfeasible for many small business owners.

Consequently, nasty lawsuits have become a lucrative business for some of the plaintiffs’ law firms who continue to file such cases.

“Who wants to be involved in a lengthy federal lawsuit?” Sanifar said. “And, in fact, that’s what plaintiffs always want: ‘Settle it with me.’

The Standard has learned that many small businesses in Chinatown have opted to settle with their ADA plaintiffs, with a few exceptions.

Larry Yee, leader of the Clay Street Chinatown-based Quong Fook Tong family association, told The Standard that his building was also sued by the ADA and the association took the case to court.

Yi said the judge dismissed the plaintiff’s claim due to false information regarding the entrance to the building, but he also acknowledged that Quong Phuc Tong spent “a lot of money” on the legal battle.

“We need financial help,” Yi said. “We don’t have outside support.”

Earth Law

For Dennis Price, a Southern California attorney representing a disabled plaintiff, it’s all about civil rights.

“ADA has been around for 30 years,” he said. “What’s new is that the defendants are trying to say that this civil right doesn’t count.”

Price welcomed the recent federal court decision, which he believes upheld the ADA’s protection as the law of the land. He resents criticism of supposedly hypothetical lawsuits that are held solely for money without a wider sense of fairness for a marginalized group. Price’s client, Chris Langer, has filed more than 2,000 cases over the past decades.

“He actually went into business,” Price said. You must have at least some interest in the case.

The defendants in Langer v. Kiser requested a rehearing, this time with a larger panel of judges who were supposed to hear the case. But so far, no action has been taken by the court.

The ADA lawsuit trend slowed after San Francisco and Los Angeles district attorneys joined the fight against Potter Handy, the law firm known for filing ADA lawsuits.

The San Francisco District Attorney’s office filed an appeal in early March after a local court rejected their original application last year. Potter Handy will have 90 days to respond.

Price, who was Potter Handy’s attorney before starting his own firm, denied that the decision in Langer v. Kiser would have any drastic implications. He insists he simply wants to ensure that people with disabilities have the same rights as people who can work.

“I don’t think it will have any real impact on the number of cases filed,” he said. “What’s unusual is that we still have cases about whether someone should have affordable parking.”

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