Introduction

In Portland, Oregon, small business owners are finding themselves unexpectedly caught in the crosshairs of ADA compliance lawsuits. These legal challenges are causing financial strain and frustration, particularly for those who were unaware of their non-compliance.

The ADA Compliance Challenge

Mike Davis, a property owner in Southwest Portland, thought his commercial building was ADA-compliant. However, in January, he received a demand letter from a local attorney, David Foster, stating that the ramp was too steep and there was no van-accessible parking. Foster proposed a settlement to avoid litigation, demanding $10,000 in attorney fees and compliance within two weeks.

Legal Actions and Accusations

Foster and another attorney, Jessica Molligan, have filed over 35 lawsuits against small businesses in the Portland area since September. These suits typically target technical ADA violations, such as improper parking space dimensions. Business owners like Doug Hwang, who received similar demand letters, feel these lawsuits are more about generating legal fees than promoting accessibility.

ADA Requirements and Enforcement

The Americans with Disabilities Act (ADA), enacted in 1990, mandates that businesses open to the public must be accessible to people with disabilities. New constructions must adhere to ADA standards, and older buildings must remove barriers when feasible. However, there is no government agency dedicated to enforcing these standards, leaving individuals to initiate legal actions.

Reaction from the Business Community

Small business owners, often with limited resources, find themselves particularly vulnerable. Legal defense costs can quickly escalate, making settlements a seemingly easier option. Davis and others believe the approach of Foster and Molligan is exploitative, despite understanding the importance of ADA compliance.

ADA Advocacy Perspectives

Tiana Tozer, a long-time disability rights advocate, emphasizes that while ADA enforcement is crucial, suing small businesses without prior notice is not the ideal approach. She believes that businesses should be given the chance to make necessary adjustments before facing legal action.

Rise in ADA Lawsuits

Oregon has seen a significant increase in ADA-related lawsuits. In 2023, federal court records show 26 ADA cases filed against businesses in the state, a sharp rise from seven cases in 2013. This surge reflects a broader trend of heightened legal scrutiny on ADA compliance.

Impact on Small Businesses

Many small business owners, upon receiving demand letters, opt to settle to avoid the high costs of litigation. These settlements often come with non-disclosure agreements, preventing them from discussing the terms or the amounts paid in attorney fees.

Conclusion

The increase in ADA lawsuits in Portland highlights the tension between ensuring accessibility and the financial impact on small businesses. While ADA compliance is essential, the methods of enforcement should consider the capacity of businesses to make necessary changes without facing exorbitant legal fees. Business owners are encouraged to proactively review their properties for ADA compliance to avoid unexpected legal challenges.

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