Khamis: ADA reform bill can stop legal shakedown that’s hurting Californians
San Jose resident David Tibbitts-Hernandez has faced difficulty accessing businesses due to his wheelchair. File photo.

Californians are paying a steep price — not just in courtrooms, but at the cash register — because of a broken civil justice system that allows systemic abuse of the Americans with Disabilities Act (ADA). Small businesses, the backbone of our neighborhoods, are under siege from waves of lawsuits often filed over minor, technical violations. Senate Bill 84 (SB 84) offers a pragmatic, humane reform that preserves accessibility while stopping legal exploitation. It deserves our legislators’ full support.

ADA laws exist to ensure fair access for people with disabilities — and they should be enforced. But the reality in California has strayed from that noble purpose. In practice, our current system allows a handful of serial plaintiffs and aggressive law firms to file hundreds of lawsuits targeting small businesses for minor infractions—like a restroom sign mounted an inch too high or a slightly sloped parking space.

Why? Because our system enables financial windfalls through statutory damages — $4,000 per violation — plus attorneys’ fees. Many small business owners settle, not because they’re guilty, but because fighting back would cost more than $50,000 in legal fees.

The numbers show how widespread and damaging this problem has become. California accounted for nearly 30% of all federal ADA lawsuits in 2023, and it reclaimed the top spot in 2024. Three metro regions — San Francisco, Los Angeles, and Riverside — together reported over 2,100 lawsuits in one year alone. And that’s just scratching the surface.

Beyond individual businesses, this lawsuit abuse is hitting the entire state’s economy. The cost is baked into everything from your morning latte to your monthly rent. Californians now pay the third-highest “tort tax” in the country — nearly $2,300 per person annually. In San Francisco, that figure jumps to a jaw-dropping $3,546. And more than 825,000 jobs are lost each year due to excessive tort costs. That’s not courtroom theory — that’s real people unable to find work, support their families, or grow their businesses. If lawmakers enacted common-sense reforms like SB 84, California’s economy could grow by $89.7 billion, according to economic impact data.

SB 84 aims to curb this abuse without compromising on access. It introduces a “notice and cure” period for small businesses — those with 50 or fewer employees. If an alleged accessibility violation is found, the business has 120 days to fix it before a lawsuit can proceed. If the violation is resolved in that time, the business is protected from statutory damages and attorney’s fees. This approach rewards action over litigation. It ensures that real access improvements are made, rather than incentivizing settlements that enrich a few while doing nothing for people with disabilities.

Critics may argue that SB 84 delays justice. But that’s not accurate. The bill does not eliminate the right to sue — it merely allows a grace period to comply. It ensures the focus stays on improving accessibility, not punishing well-meaning business owners who may not even be aware they’re out of compliance.

Meanwhile, the trial bar’s influence only grows. From January 2023 to June 2024, trial lawyers spent $353 million on 3.5 million ads across the state promoting lawsuits. Since 2017, the top 20 plaintiffs’ firms have donated over $15.5 million to political campaigns. These aren’t public interest crusaders — they are running a profitable business model off the backs of our small businesses.

SB 84 brings balance back to the system. It protects the rights of the disabled community while also safeguarding the economic future of our towns and cities. Californians deserve a justice system that upholds fairness — not one that’s hijacked for profit.

As a former San Jose councilmember, I still receive feedback from many small businesses on a variety of issues that they face. These frivolous lawsuits continue to rank toward the top. Let’s be clear: accessibility is not optional. But neither is economic survival. SB 84 gives us the tools to ensure both and our local San Jose businesses deserve this.

Johnny Khamis is a former San Jose councilmember.

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