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  5. 3 costs businesses may need to address in the wake of ADA lawsuits

3 costs businesses may need to address in the wake of ADA lawsuits

On Behalf of Karlin Law Firm LLP | Aug 14, 2024 | ADA |

The Americans with Disabilities Act (ADA) created several obligations for businesses. Many of those obligations relate to public access rights. Customers and other visitors to a business can file complaints and possibly also lawsuits over alleged ADA violations.

When customers or clients cannot access business facilities or services because out of a disabling medical condition, they might use the legal system to force a company to change its facilities or business practices. An ADA lawsuit can lead to numerous significant expenses for a targeted business.

Repair or modification expenses

An ADA lawsuit often results in a court order to modernize facilities or make websites accessible. Businesses may incur tens of thousands of dollars in expenses while renovating existing facilities or reworking a website. Those expenses may pale in comparison to the costs imposed if they do not make the necessary changes. A second lawsuit might be possible if an organization does not promptly make changes to its facilities or website following a successful ADA lawsuit.

An order to cover attorney costs

Businesses facing ADA lawsuits typically have to retain representation as they navigate the litigation process. They may have to pay fines if the plaintiff prevails. The courts can also order the business to cover the attorney costs incurred by the other party. Attorneys sometimes charge particularly high rates in cases where parties other than their clients have to cover those costs. The attorney fees of the plaintiffs can significantly increase the total cost generated by an ADA lawsuit.

Lost sales due to reputation damage

ADA lawsuits can draw public attention. Some plaintiffs intentionally conduct social media smear campaigns trying to draw attention to their lawsuits and impugn a business for failing to accommodate them. While some experts say that there is no such thing as bad publicity, there are customers and clients who may not give a company their business because of ADA violations. People may view such violations as a sign of ableism or discrimination against those with disabling medical conditions.

Proactive ADA compliance when obtaining new business facilities or putting up a website can help protect against the cost of a lawsuit. Responding appropriately to a pending ADA lawsuit is also crucial for the protection of a business’s bottom line. Businesses that avoid lawsuits or settle them can sometimes avoid the worst consequences possible.

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