When a local property manager in La Mesa received a letter in the mail asking if his rental office had a text-to-voice machine, he was confused. The 72-unit apartment complex he managed didn’t even have a rental office. But that wasn’t the point.
The letter was a setup.
Days later, he was served with a federal lawsuit for allegedly violating the Americans with Disabilities Act — not because a tenant had complained, but because a serial plaintiff and their attorney were blanketing California with boilerplate lawsuits. They demanded a $5,000 settlement. He paid it, knowing that defending the case in court could cost 10 times as much.
That’s what passes for business as usual now in California’s housing world. These lawsuits don’t come from tenants; they’re about money. Settlements are making the plaintiffs rich, one check at a time — and they’re driving up the cost of housing.
These predatory lawsuits slowed down during the pandemic but now we are seeing the first big wave since the shutdowns. This year, our association has fielded numerous calls from terrified housing providers facing lawsuit threats.
Another local housing provider was also hit. Her property has no stairs and a long record of tenant accommodations, including bathtub conversions for elderly and disabled residents. None of that mattered. She received a lawsuit with a laundry list of infractions and demanding thousands. Her attorney called it what it was: a shakedown. She paid the settlement, knowing she had no real choice.
Both victims asked that their names not be used, fearing that they’ll be targeted again.
Stories like these are playing out across the state. California is home to more than 40% of the nation’s ADA litigation, according to the U.S. Department of Justice and the Civil Justice Association of California.
A small number of firms file thousands of lawsuits, using many of the same plaintiffs over and over. They’ve found a way to game the system. And right now, federal law allows it.
To be clear, the ADA is an essential law. It opened doors — literally and figuratively — for millions of Americans. But it was never intended to be used as a tool for legal extortion.
Think “legal extortion” is a strong term? That’s exactly what’s happening when plaintiffs file suit over a sign that’s two inches too high or a ramp that’s two degrees too steep. This is happening — often at properties built decades before the ADA existed and which are not legally required to retrofit unless major renovations occur.
California’s lawmakers have tried to address these lawsuits by creating a “right to cure” period for certain violations and encouraging property owners to conduct Certified Access Specialist inspections. After those reforms took effect, we saw fewer lawsuits in state court.
But here’s the problem: none of that matters in federal court, where these lawsuits are now being filed en masse to get around the state reforms.
Federal lawmakers need to step up — now. We need common-sense reform that protects the spirit of the ADA without allowing it to be hijacked.
We also need the feds to crack down on serial filers who exploit this law for profit. That’s exactly what happened in California in 2012 when an attorney was disbarred after filing more than 500 such cases in state courts.
Small landlords are already under pressure from rising costs, restrictive local ordinances, and calls to artificially lower rents.
The reality is, these lawsuits are driving up housing costs, discouraging investment in older properties, and punishing the very people trying to keep rental housing available and affordable.
Enough is enough. It’s time for Congress to fix this.
Alan Pentico is executive director of the Southern California Rental Housing Association.
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