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  5. Why settlement agreements don’t always prevent future claims

Why settlement agreements don’t always prevent future claims

On Behalf of Karlin Law Firm LLP | Mar 24, 2026 | Firm News |

When a California business settles an ADA lawsuit, it often feels as if it has resolved the problem. The business pays money and closes the case. Many owners believe this agreement protects them from another lawsuit over the same issue.

However, a settlement is a private contract. It usually binds only the people who signed it. If one person sues over a doorway and the parties settle the case, that agreement applies only to that specific person. If another individual visits and faces the same barrier, that person may still have the right to file a new claim.

Understanding California’s legal protections

While new claims are possible, California law has changed to help protect business owners. State lawmakers created rules to stop stacking damages. If a person visits a business many times, knowing a barrier exists, that person cannot simply multiply the legal claim for every visit. The law requires that person to mitigate or limit the harm.

California law also offers safe harbors for businesses that take action. If a Certified Access Specialist (CASp) inspects your property, you may qualify for a 90-day stay of a lawsuit and an early court meeting. This process can significantly lower legal costs and give you time to address issues before penalties increase.

Why fixing the physical barrier is the best defense

The most common reason for a new lawsuit is that a business never fixed the physical barrier. Some settlements allow a grace period to make repairs. If a business delays those repairs, it remains at risk.

A business cannot rely only on a signed paper. To truly close the door on future lawsuits, the business must bring the property into compliance with the California Building Code.

Working with a lawyer who understands these specific state rules is vital. An attorney may help you move beyond a temporary settlement and toward long-term legal protection.

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