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​Chicago area Shops hit with ADA accessibility lawsuits targets of serial litigators

mark handler

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Chicago area Shops hit with ADA accessibility lawsuits likely to be targets of 'serial litigators'

http://cookcountyrecord.com/stories/510711448-easy-access-shops-hit-with-ada-accessibility-lawsuits-likely-to-be-targets-of-serial-litigators

Editor's Note: This is the second installment in a three-part series examining the recent rise in ADA Title III accessibility lawsuits in the Chicago area. The first installment discussed the growing trend. The final installment will take a look at the impact of the lawsuits on businesses and organizations.

Earlier in the year, Margie Milovich’s neighbor had been hit with a lawsuit under the Americans with Disabilities Act. But she said it still didn’t prepare her for the moment the same plaintiff delivered a similar lawsuit to the door of LaSalle Flowers, a family-owned River North flower shop at 731 N. LaSalle, dating back to the 1930s.

“It was a complete shock,” said Milovich, who has managed the flower shop for 21 years. “No one has ever had an issue purchasing flowers here.”

The flower shop is located around the corner from Fabcakes, a breakfast and coffee shop that was sued earlier in the year by the same party, Chicago resident Mary Mizerk and her attorney, John L. Steele, of the Accessibility Law Group and formerly of Prenda Law.

The suit alleged that Mizerk, who has osteoarthritis and uses a wheelchair, could not enter the flower shop on her own because the doorway was about 5 inches higher than the sidewalk.

The civil suit, brought under Title III of the ADA, was one of several filed by Mizerk and Steele against businesses within several blocks of each other in Chicago’s River North neighborhood.

And that fact was not lost on Milovich.

“This lawyer is targeting mom-and-pop places,” she said of Steele. “There have been 14 lawsuits [nearby] … 14 of our local shops. He’s not going after the big people, [he’s targeting] small restaurants, small salons, small neighborhood pubs.”

Many businesses and defense attorneys find issue with such “serial” or “drive-by” filings, particularly because they stem from a handful of plaintiffs and lawyers.

Of the 94 ADA Title III lawsuits filed in 2015 in the U.S. District Court for the Northern District of Illinois, 77 were brought by only eight plaintiffs, each represented by the same legal counsel.

Mizerk filed six suits with Steele, but Steele also represented William Gomez, who filed eight suits in 2015, and Ollie Franklin, who filed five lawsuits last year.

Another chunk of litigation was filed by repeat plaintiffs Howard Cohan and Santiago Abreau, both represented by the firm of Jacobson and Tchernev, of Chicago. The two plaintiffs filed 21 and 16 lawsuits, respectively.

The trend didn’t appear to change in 2016. Through March 31, 29 ADA Title III suits were filed. Abreau was the plaintiff named in 11 suits; Cohan filed 10 suits; Mizerk, three; and Gomez, three.

To many business owners, those numbers substantiate their belief that some litigators are out to make money, banking that most defendants will settle quickly to avoid larger fees that would come with fighting the complaint.

Ivo Tchernev of the Law Offices of Jacobsen and Tchernev did not reply to repeated requests for comment.

However, Steele said he and his clients aren’t just after a quick buck, pointing out that plaintiffs can’t ask for damages, only injunctive relief.

“The goal of the ADA is not just to beat people up, because there are no damages, per se, but to get people caught up to 2016,” he said. “My clients - and I believe, in general, other clients who have brought cases similar to mine - they’re not looking to get rich off [these suits]. And they certainly do not get rich off it. They just want a business to extend the civil rights that they deserve.”

Steele also said he doesn’t nitpick when choosing cases to file.

"If I have a client that [says], 'There's this building, they’re not in compliance because the ramp grade is a little bit too steep,' my general attitude is, this isn’t a game of ‘gotcha’ because of the rise-over-run elevation," said Steele.

Nonetheless, that is a main point of contention in the case filed against Fabcakes.

The lawsuit stated the ramp to Fabcakes was approximately 7 inches long and climbed approximately 3-4 inches between the sidewalk and the level of the front door.

"At the top of the ramp between the sidewalk and the front door, Mizerk would have had insufficient space to open the door and enter the restaurant, had she been able to climb the ramp," the complaint said.

Steele has come under fire in recent years after his former firm, Prenda Law - which he sold, he said – allegedly made millions by threatening to sue thousands of people suspected of illegally downloading pornographic movies.

Some see a correlation between the demand letters sent to the defendants in those cases and the letters businesses are receiving now, advising them to comply with ADA guidelines.

Steele said as an attorney now focusing on ADA litigation, it’s harder for people to mudsling, though they do try.

“In the adult entertainment industry, when they’re caught red-handed … sometimes they try to dirty or attack the name of the plaintiff [even though they’re guilty of] stealing adult content,” Steele said. “They would make it out that, ‘They’re porn people,’ putting them down, instead of [admitting], ‘Oh, I did steal it.’ When you’re a business, I think attacking a person with disabilities who wants to get in [your establishment] … that really doesn’t work when there is a picture of the complaint of my client in a wheelchair unable to get in the doorway.”

Steele maintains that many of his clients are young veterans who want to return to the same establishments they frequented before becoming injured in the line of duty.

“It’s been a real problem because these guys are going out and they’re finding out these fancy restaurants and bars - everything from hair cuttery places to whatever - are not complying with the Americans with Disabilities Act,” Steele said.

Because the courts cannot possibly go after every business that is not in compliance with the ADA, filing a discrimination lawsuit has become the only mechanism available to handicapped individuals, Steele said.

Still, defendants find many ADA lawsuits unpalatable, specifically when court filings openly list the plaintiff as a “tester” - someone who seeks out discriminatory public accommodations.

Steele said he doesn’t think there’s anything wrong with using a tester, though he asserted he doesn’t utilize such plaintiffs.

“I can’t think of a single instance where any of my clients have described a restaurant or establishment that isn’t in their neighborhood or they have gone to,” Steele said.

Indeed, the lawsuits filed by Mizerk against LaSalle Flowers and Fabcakes assert Mizerk lives within four city blocks of each establishment.

But representatives of neither business can recall ever seeing Mizerk enter the store. And Milovich said she believes Mizerk has no intention of purchasing flowers at LaSalle Flowers in the future.

Had the flower shop gone to trial, owner Margot Sersen could have used that argument to challenge the standing of Mizerk - one of the few arguments a defendant can make against an ADA complaint.

Even then, it often isn’t enough to dissuade a court from siding with the plaintiff, as a simple sentence of fact usually does the trick, said Bill Pokorny, a labor and employment partner at Franczek Radelet.

“If you read the complaints, [they say], ‘I actually went in; I was a customer at the restaurant,’ and that’s usually enough to give them standing,” he said.

Marca Bristo, CEO and president of Access Living, a group which advocates on behalf of those with disabilities, said her group is not opposed to testers, nor to lawsuits that result from such tactics. In fact, Access Living created a fair housing testing program to root out discrimination in the housing sector. And if the organization had the capacity to increase its scope of work to file suits under Title III, it would not rule out utilizing testers, she said.

“Do most disabled people go around [looking for noncompliant businesses]? No. We would be exhausted if we did that,” she said. “Should we? We probably really should.”
 
Chicago Small Businesses Targeted By ADA Lawyers Feel Cost Of Compliance

http://www.forbes.com/sites/legalnewsline/2016/04/11/chicago-small-businesses-targeted-by-ada-lawyers-feel-cost-of-compliance/#5d7261377b95

Whether it’s the cost of compliance – in the form of handicapped restrooms, ramps, elevators or even simple signage – or the cost of a trial, the dollars can add up quickly for small businesses facing accessibility lawsuits under the Americans with Disabilities Act.

Even if a defendant settles – as did Margot Sersen, owner of Chicago’s LaSalle Flowers, last year – it can still cost thousands.

Sersen’s shop – a building typical of its River North neighborhood – was built in the 19th century, with a front entrance abutting the public sidewalk, leaving no room for a permanent ramp.

When Sersen received a letter from lawyer John L. Steele, of the Accessibility Law Group, asserting that his client, Chicago resident Mary Mizerk, couldn’t maneuver her wheelchair up the five-inch stoop, she thought she would be safely “grandfathered in” from any litigation.

But Sersen soon learned the ADA does not acknowledge such a defense. Any physical barrier, even those created prior to the ADA’s adoption, can be cause for discrimination.

After several months of back-and-forth with Steele, Sersen finally settled, paying $2,500, plus the cost of a removable aluminum ramp, which was approximately $150, she said.

“[steele] wanted $7,500,” Sersen said. “I was determined not to give him anything, but after six months, [my lawyer and insurance company] said it was in my best interests to give him the $2,500. They… said it’s going to cost us a lot more if we continue fighting with that guy.”

The amount was too much in Sersen’s mind, who said she was shocked to receive the lawsuit and still doesn’t believe she discriminated against any customers.

But it’s on the low end of what a business could pay.

Architect Richard Vivenzio, an ADA-testifying expert with Chicago-based business consulting firm Navigant, said when he is called to help resolve an ADA dispute, it rarely is a matter that can be fixed with a couple hundred dollars.

Vivenzio was involved in a case in New York City similar to that of LaSalle Flowers, in which the building entrance similarly left no space for a permanent ramp.

The parties ultimately settled, Vivenzio said, but not before the store agreed to make several ADA-compliant upgrades.

“They had a wooden ramp that they would carry out because, ironically, their owner was wheelchair [bound],” Vivenzio said.

“And they had a guard at the door, so if someone needed assistance, they would pull out the ramp…What the plaintiff wanted was an aluminum ramp that could be deployed. [We] did the research to find an aluminum ramp, [and we found one] … it was probably in the $15,000 range, and it wasn’t going to solve the problem because it was going to take 15 minutes to put together.”

But, the new ramp was installed, as well as a handicapped restroom – at a cost of roughly $20,000, he said.

Those were just compliance costs. While Vivenzio couldn’t provide exact numbers for that suit, he said attorneys fees can run north of $25,000 per case.

“[businesses] pay experts, myself included, to get these things solved,” he said. “The plaintiff has experts, too, to find the items that don’t meet ADA requirements and put those in a report. If I’m on the defense side, those are the reports we’re checking to make sure they’re accurate.”

Usually, the courts aren’t looking to choke small business owners, Vivenzio said.

“It’s been my experience that the courts have tried to negotiate and find a solution that’s acceptable to both parties that doesn’t cost an arm and a leg,” he said.

Still, defense lawyers and business consultants say the best defense is to be proactive to avoid litigation in the first place.

Having a working understanding of the ADA Accessibility Guidelines can go a long way toward deflecting future lawsuits, especially if a business is considering renovations.

The ADA stipulates landlords must use a percentage of their overall renovation budget to make ADA upgrades, Steele said.

In the case he brought against coffee shop Fabcakes, he alleged that the Chicago business had undergone an $80,000 renovation in 2011 without spending the proper amount to ensure the altered portions of the building were readily accessible to those in wheelchairs.

Fabcakes owner Fabiola Tyrawa and her landlords each paid $2,500 in the settlement and promised to provide signage to alert patrons that the entrance was handicapped accessible.

“No attorney … would be doing their job if they just got a settlement that didn’t require the [best] compliance as possible with the ADA,” Steele said. “I’ve certainly never done that and certainly never will.”

From the standpoint of those who advocate on behalf of those with disabilities, complying with ADA will only help businesses.

“The truth is, there are a growing number of people with disabilities, especially as people are aging,” said Marca Bristo, president and CEO of Chicago-based Access Living. “Not only is [compliance] the right thing to do, the legal thing to do, but it is the best thing to do for your business. If you have… barriers, you’re really limiting your establishment from clientele.”

However, what is readily achievable for one business owner may not be for another, making the ADA guidelines problematic for many business owners to navigate.

And just because a business has been hit with an ADA lawsuit once doesn’t mean it can’t happen again.

For that reason, Tyrawa went beyond what Steele’s complaint insisted she do. She installed a doorbell that any Fabcakes customer could ring for assistance. She also bought a portable ramp and trained her employees how to use it.

“I did all that stuff on my own,” Tyrawa said. “Since the lawsuit, nobody [has rung] the doorbell once. I put that [up] not to be sued again, but it’s useless.”
 
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