April 30, 2015
Capitol
Office
Attention:
Judiciary Committee Staff
State
Capitol, Room 2059
Sacramento,
CA 95814
P: (916) 651-4005
F: (916) 651-4905
RE: OPPOSITION AND/OR AMENDMENT TO SUPPORT
SB 67
Dear
Senator:
This letter
provides a step-by-step review of the most relevant sections of SB 67.
The SB 67 does not contain a purpose. However, by reading the bill as a
whole, UAAAC has determined that the purpose is to stop ADA lawsuits. The
reason for this deduction is because by requiring written notice and allowing
the businesses to correct the violation, the lawyer will not need to file the
lawsuits. However, as noted below, the ADA lawsuits will continue because the
California legislature only has the power to reduce or to eliminate statutory
damages but it does not have the power to stop the lawyers from filing ADA
lawsuits. This letter does not explain why SB 67 may violate the rights
of people with disabilities. This letter focuses on what could be the practical
approach of SB 67. The outcome will not achieve the purposes of the
author of SB 67. The constituents of the author will quickly become dissatisfied
with the outcome of SB67 and will become dissatisfied with the author.
UAAAC ANALYSIS OF SB 67
A. Minor changes are made to SB 1608 and SB 1186 as to the application for a stay and to set an early evaluation conference program. See Section 1, pp 1-14. UAAAC opposes the entire program and has filed a federal lawsuit and a preliminary injunction to stop the program. See UAAAC v. Buttonwood Investment Group, L. P., U.S. District Court, Southern District of California, Case Number 15cv00113-JM-WVG.
UAAAC ANALYSIS OF SB 67
A. Minor changes are made to SB 1608 and SB 1186 as to the application for a stay and to set an early evaluation conference program. See Section 1, pp 1-14. UAAAC opposes the entire program and has filed a federal lawsuit and a preliminary injunction to stop the program. See UAAAC v. Buttonwood Investment Group, L. P., U.S. District Court, Southern District of California, Case Number 15cv00113-JM-WVG.
B. Section 2(a-e) are not opposed or supported by UAAAC.
C. Plaintiff's
damages will be reduced to $1,000 if the business corrects the violations
within 120 days of receiving the complaint and the property had a certified
inspection, a certified inspection is pending or the improvement was approved
by a building inspector. See Section 2(f)(1)(A-D) UAAAC opposes. For a
second let us assume that statutory damages are not allowed at all, the ADA
suits will continue. So reducing
damages will not stop ADA suits.
D. A plaintiff will not be able to recover any statutory damages against a small business. See Section 2(f(2)(A-B). UAAAC opposes for the reasons already stated as to this section. Also, the California Legislators must understand that this section will spawn more litigation, thereby, hurt small businesses. Honestly, Shakespeare was correct that lawyers search for fees. In America the client pays her lawyer fees. There are two exceptions to the American Rule: Contingent Fees and Attorneys' Fee Shifting Provisions. Large law firms use the America Rule and search from large corporate clients with multiple legal issues so that the firm can maximize billable hours. Lawyers using the contingent fee method in their hunt for fees select large damage cases and run multiple small damage cases. The multiple small cases are needed for the monthly bills. No damage cases are rejected. The lawyer gathering fees using the fee shifting method select employment or class action cases. In 1968 the Disabled Persons Act was passed but it was not enforced. So, between 1970 and 1992, the California Legislature added an attorneys' fee shifting section to DPA and increased statutory damages several times as incentives to promote private enforcement of DPA. However, these incentives failed. In 1995 a young lawyer with cerebral palsy combined the multiple small damages cases method with the fee shifting concept to create an access law business model. The model required the filing multiple access cases and settling for less than $20,000 and for access corrections. Other lawyers adopted this business model and forced businesses like Shell, KFC, McDonalds, Public Storage and many more to comply with the access laws. Also, the access law business model allowed the lawyers to sustain their practices and families by earning fees. Like any other business, access firm have breakeven fee amounts - fees that keep the door open and support their personal standard of living. The business model is based on ADA remedies of injunctive relief and attorneys' fees. Without damages the breakeven fee amount must be higher to account for nominal damages. Nominal damages compensate a person for vindication of a legal right if there are no actual damages. Also, without statutory damages intentional claims will be alleged based upon the knowledge to a substantial certainty test. The allegation will go like this: "ABC store knew about the ADA requirements by gaining it by personal inquiry or by learning it from others. Thus, ABC knew it had to find out what ADA improvements had to be done at the store. Accordingly, ABC is liable for intentional infliction of emotional distress or negligent infliction of emotional distress." In this case a plaintiff must prove intent and emotional distress. Both sides must take depositions to prove or disprove intent and emotional distress. This only makes it easier for the defense attorney to bill the small business more fees and helps the plaintiff's attorney reach his or her breakeven fee amount before serious settlement talks are considered. In the end without statutory damages, the defense and plaintiff lawyers will litigate more, the small business will pay more and the plaintiff will receive less.
Finally, SB 67 assumes positive incentive measures will work better than coercive measures. The positive SB 67 incentive measure is reducing or eliminating statutory damages will reduce litigation and promote accessibility. However, many justice systems through history have learned these positive reward methods do not encourage people to comply with laws. This is why all justice systems used coercive measure to achieve compliance with laws. SB 67 attempts to reduce coercive lawsuits by reducing statutory damages. However, a state cannot expect to achieve compliance with laws by replacing coercive measures with positive rewards for compliance. Instead the coercive measure must be replaced by an equal or more severe coercive measure. For example, the State can require all
businesses to
comply with the access laws by January 1, 2017 or pay $70,000. If said amount is not
paid in 30 days then the business must closed until access compliance is
certified. This coercive method will work but it will never pass as a law. The
other effective coercive method is attorney general enforcement by providing
$300 million in funds for access enforcement. However, in this scenario the
government will be hated, not the private lawyers. This will not happen.
So if SB 67 is not the answer for a Senator looking to help businesses in his or her District stop ADA lawsuits, what is the answer? The answer is direct instruction by phone, video chat or in person with each business in the district for 3 hours. The direct instruction will be performed by district staff for free and will be provide step by step instructions on how that particular business can comply with the ADA in 30 days. After the direct instruction is provided, staff will contact the business in 45 days to verify that access compliance was achieved. If access compliance was not achieved the staff will take no further action. In the event the business is sued, the Senator can be assured he or she used best efforts to help the business before it was sued.
So if SB 67 is not the answer for a Senator looking to help businesses in his or her District stop ADA lawsuits, what is the answer? The answer is direct instruction by phone, video chat or in person with each business in the district for 3 hours. The direct instruction will be performed by district staff for free and will be provide step by step instructions on how that particular business can comply with the ADA in 30 days. After the direct instruction is provided, staff will contact the business in 45 days to verify that access compliance was achieved. If access compliance was not achieved the staff will take no further action. In the event the business is sued, the Senator can be assured he or she used best efforts to help the business before it was sued.
CC:
JUDICIARY COMMITTEE
Tel: (916) 651-4113
Fax: (916) 403-7394
Email: sjud.fax@sen.ca.gov
SENATOR HANNAH-BETH JACKSON,
JUDICIARY COMMITTEE CHAIR
SENATOR JOHN M.W.MOORLACH,
JUDICIARY COMMITTEE VICE CHAIR
SENATOR JOEL ANDERSON,
SENATOR ROBERT M. HERTZBERG,
SENATOR MARK LENO,
SENATOR BILL MONNING,
SENATOR BOB WIECKOWSKI,
JUDICIARY COMMITTEE MEMBERS