California’s love affair with unmerited lawsuits targeted at small and minority small business owners is alive and well. So much so that the California Assembly failed to even schedule a hearing on Senate Bill 84, a much-needed reform measure to protect against abusive shakedown Americans with Disabilities Lawsuits (ADA).
Senator Roger Nielo, R-Fair Oaks, authored Senate Bill 84, which would have allowed small businesses the right to cure for a short period of 120 days, to correct ADA violations before being sued. The legislation was a wonderfully simple idea that drew an impressive bipartisan coalition of legislative co-authors. It passed the State Senate 34 to 2.
The ADA reform measure was enthusiastically supported. The bill’s author personally met with and recruited Democrat members to co-author the legislation. Some Senate members even crossed the legislative aisle to co-author SB 84, notably including: Senators Angelique Ashby, Anna Caballero, Ben Allen and Tom Umberg. Assembly co-authors included Assemblymembers Jacqui Irwin, Stephanie Nguyen, Blanca Pacheco and Rhodesia Ransom.
Multiple advocacy organizations gave testimony to support the bill at the SB 84 Senate hearing aimed at advancing the bill to the Assembly.
One small business owner shared her experience of how her restaurant table was one-sixteenth of an inch too low, and thus, they faced an expensive settlement without the opportunity to fix the problem. Another small business owner shared how her parking lot sign was stolen during the night and the first thing she did the next morning was order a new one. Her action was swift because she had experienced a similar ADA suit previously. She was still sued by day’s end.
These abusive lawsuits, where business owners are punished for circumstances beyond their control, cannot be allowed to continue. Small business owners are the backbone of our economy, providing jobs and supporting communities every day. They deserve protections that maintain fairness while still ensuring accessibility for consumers.
Even with noble actions and hard work from all involved in passing the reform measure in the Senate, the bill was dead on arrival in the Assembly. The Assembly Judiciary Committee refused to give SB 84 even one hearing. By not allowing a robust discussion around the bill to support it or not, is another way to just block its passage.
To not give SB 84 one hearing in the Assembly is anti-democratic.
The much-needed reform would have helped small business owners and consumers during this challenging time when businesses are struggling, and consumers are barely able to make ends meet. SB 84 would have honored the foundation and intent of ADA by helping to get changes made for access while holding off the expense of litigation or huge payout settlements.
The consequences of expanding opportunities to sue carry real economic costs. California residents already pay $2,458 per person annually in “tort tax”—that’s more than $9,830 for a family of four. California’s per person tort tax has increased more than 28% since 2021.
Residents living in the San Francisco and Los Angeles metro areas can pay a tort tax up to 89% more than the statewide average—$4,651 and $3,658 per person, respectively. Excessive tort costs additionally contribute to an estimated loss of 829,255 jobs and $5 billion in revenue for the state’s government annually.
This Lawsuit Abuse Awareness Week, Oct. 5-11, California Citizens Against Lawsuit Abuse is calling on California Assembly members to focus on positive reforms that will help small businesses thrive rather than suffer through frivolous, needless lawsuits that can put them out of business altogether. Their positive reforms will also greatly lessen the costs consumers pay for goods and services.
California Citizens Against Lawsuit Abuse and our thousands of supporters are in love with reforming abusive ADA lawsuits and providing relief for business owners and consumers. We will not give up.
To join our free grassroots movement in support of small business owners and consumers, please go to californiacala.org.
Victor Gomez, Executive Director of Citizens Against Lawsuit Abuse
Former Mayor of Hollister
