BILL ANALYSIS Ó
AB 1521
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1521 (Committee on Judiciary) - As Amended May 6, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
Provides additional information and legal resources to small
business owners who may not realize how to minimize their
liability for ADA violations or respond to a lawsuit filed
against them. Specifically, this bill:
AB 1521
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1)Revises the notice of rights and responsibilities, which is
required by current law to be provided to a defendant
contemporaneously with service of a complaint or demand letter
alleging a construction-related accessibility claim or
noncompliance, to advise the defendant that:
a) If found liable by a court, they may be able to reduce
the amount of money the court orders them to pay in
damages, and that, if they are a small business owner and
correct all of the construction-related violations within
30 days of being served, they may qualify for reduced
damages. The notice is to also advise the defendant that,
if they believe they qualify for reduced damages, they may
wish to consult an attorney to obtain legal advice, or
contact the California Commission on Disability Access
(CCDA) for additional information about the rights and
obligations of business owners.
b) If they are a commercial tenant, they may not be
responsible for ensuring that some or all portions of the
premises they lease, such as common areas and parking lots,
are accessible because those areas may be the
responsibility of their landlord, and that they may want to
refer to their lease agreement, or consult with the
landlord or an attorney, to determine if the landlord is
responsible under the terms of the lease for maintaining
and improving some or all of the leased areas.
2)Requires the Judicial Council, by July 1, 2016, to revise the
notice per (1) and to develop a form to facilitate a
defendant's response to an ADA-related complaint, as
specified.
AB 1521
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FISCAL EFFECT:
Minor and absorbable costs to the Judicial Council to revise the
notice and develop the required form.
COMMENTS:
Background and Purpose. Information reported to the CCDA
indicates that a significant portion of construction-related
accessibility lawsuits are being filed by a small number of law
firms in California. According to the Commission, between
September 2012 and October 2014, 5,392 complaints (including
demand letters) were filed (in both state and federal courts).
More than half (54%) of the complaints were filed by just two
law firms, and 46% of all complaints were filed by just 14
parties.
This bill is intended to help combat the problem of serial ADA
litigation. Early and easy settlement of claims by business
owners is a problem because it fuels the unethical attorneys
whose business model is an easy settlement. Business owners,
especially small businesses that are tenants in larger shopping
centers, may not be liable for the damages they think they are
exposed to. Landlords are responsible for maintaining parking
lots in these complexes and are more likely to have the
resources and wherewithal to litigate or settle claims and to
bring the property into compliance.
AB 1521
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The updated notice required by this bill will provide defendants
with more information about their rights and responsibilities.
The new answer form will discourage quick settlement of inflated
claims and exaggerated settlement offers by giving the defendant
business not only a way to respond to the complaint (and engage
in effective negotiations with the plaintiff), but also
information about how to limit his or her liability. This new
form will be especially helpful to small businesses with limited
financial resources because those businesses may not be able to
afford to hire an attorney.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081