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On October 26, 2006, the California state Court of Appeal ruled that disabled plaintiffs suing for damages under California’s Unruh Civil Rights Act (Unruh Act), must prove intentional discrimination in order to recover the $4,000 minimum damages per offense” that makes this kind of litigation so lucrative to plaintiffs and their lawyers.

In California, litigation filed under the Americans with Disabilities Act (ADA), and the related Unruh Act and Disabled Persons Act (DPA) — which allows for a minimum of $1,000 per offense — has allowed plaintiffs to recover damages for multiple offenses from one defendant, plus attorneys’ fees. It is no wonder that, in California, filing this kind of litigation — which often focuses on highly technical violations — has become a cottage industry for plaintiffs groups and their lawyers. Because hotels are designated as “places of public accommodation” under the ADA, their owners have been routine targets of these groups.

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Hotels and other targets of ADA lawsuits have found a friend in the U.S. Constitution: Article III.

Many thousands of ADA lawsuits have been filed in federal District Courts in the past few years. A large percentage of the plaintiffs filing these lawsuits are represented by a handful of plaintiffs’ organizations that specialize in ADA lawsuits. Because plaintiffs can recover attorneys’ fees and litigation costs and — in California and several other states — damages, in addition to injunctive relief, plaintiffs’ organizations have become a cottage industry.

However, some federal courts have recently determined they have no authority to award attorney’s fees, because the plaintiffs failed to establish “Article III standing”.

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As most hotel owners and operators know, the Americans With Disabilities Act (ADA) prohibits discrimination on the basis of disability by “public accommodations,” including places of lodging. This requires facilities to be designed, constructed, and altered – where “readily achievable”– in compliance with the accessibility standards as set forth in the Americans With Disabilities Act Accessibility Guidelines (ADAAG).

The ADAAG standards – last revised in 1994 – are being amended by the Access Board, Department of Transportation and the Department of Justice (DOJ). It is expected that the proposed ADAAG standards will be adopted substantially as drafted.

The hospitality industry has been keenly interested and involved in this process. For example, at one point, the Access Board proposed that 50% of all guest rooms be made accessible with hearing impaired devices. But industry experts estimated the economic conversion cost at nearly $3,000 per room, and in the final version of the Access Board’s proposed guidelines, the requirement has been lowered to 9% of all guest rooms.

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