ADA Title III News Insights | Disability Law for Businesses | Seyfarth Shaw

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Web Name: ADA Title III News Insights | Disability Law for Businesses | Seyfarth Shaw

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By Seyfarth Shaw LLP on November 17, 2020 Posted in ADA Title IIIBy Minh N. Vu and Kristina M. LauneySeyfarth Synopsis: A Biden Administration DOJ will likely bring higher engagement and more aggressive enforcement on ADA Title III issues.While the current administration may still be unwilling to concede the election, it appears there will indeed be a new administration in charge at the Department of Justice (DOJ) come January 20, 2021.  How will the Biden Administration approach Title III of the ADA and its enforcement?  We think there will be much higher engagement and likely more aggressive enforcement on multiple fronts.Enforcement.  Under the Obama Administration, the DOJ aggressively pursued enforcement actions against businesses regarding the alleged inaccessibility to people with disabilities of technologies that businesses use to provide their goods and services to the public especially websites and mobile apps.  During the Trump Administration, we saw virtually no new investigations about websites or mobile apps that were not accessible to people with disabilities. And, investigations that were pending under the Obama Administration went dormant under the Trump Administration.  We expect the Biden Administration to resume the aggressive approach to enforcement taken by the DOJ during the Obama years on this issue.As a result of increased enforcement, businesses should expect DOJ to demand higher monetary damages and civil penalties (presently the ADA authorizes maximum penalties of $96,384.00 for a first violation and $192,768 for a subsequent violation) and more onerous remedial terms.Regulations.  Consistent with its anti-regulation policy, the Trump administration put the kibosh on every ADA Title III rulemaking that was pending.  Granted, many of those saw little progress under the Obama Administration (including, notably, proposed regulations adopting accessibility standards for public accommodations’ websites under Title III), but there is a real chance that some rulemakings will be revived under the Biden Administration.  At  the end of President Obama’s term, there was more rulemaking activity around issuing accessibility standards for the websites of state and local governments covered by Title II of the ADA.  Perhaps the Biden Administration would revive that rulemaking.  Rulemaking efforts that were also in progress at the end of the Obama DOJ’s tenure (and withdrawn by the Trump DOJ), such as on non-fixed equipment and furniture may likewise resurface.  The Obama DOJ squeezed in a final rule on movie captioning audio description on the way out the door in late 2016.Technical Assistance.  The Trump DOJ put out very few technical assistance documents which historically have been a valuable source of guidance to help businesses understand and comply with the ADA and its implementing regulations.  We anticipate seeing more technical guidance from the DOJ in the coming years.Intervention in Pending Lawsuits.  The Trump Administration rarely intervened in ADA Title III lawsuits in contrast to the Obama DOJ (for example, see here and here).  We expect the DOJ to resume its practice of intervening on behalf of plaintiffs in important lawsuits and to push the boundaries of the law in ways that will impose greater obligations on covered entities.Legislative Reform.  There have been some short-lived attempts at ADA reform in Congress over the past four years, including the ADA Education and Reform Act, the ADA Notification Act, and most recently, the Online Accessibility Act, and even letter writing efforts between members of Congress and the DOJ.  These efforts  have not gained much traction because they did not receive support from disability rights advocates.  We do not see that situation changing during a Biden Administration.***Given the forthcoming more aggressive enforcement environment, businesses should very seriously consider whether their ADA Title III compliance programs are sufficiently robust, particularly with regard to their digital assets.  How good is our crystal ball?  Pretty clear, based on our November 2016 predictions.By Seyfarth Shaw LLP on October 14, 2020Posted in WebsiteAccessibility computer icon buttonBy Minh Vu and Julia SarnoffSeyfarth Synopsis:  Congressmen Budd and Correa try to address website and mobile app accessibility in a new bill called the “Online Accessibility Act.”  On October 2, 2020, Representatives Lou Correa (D-CA) and Ted Budd (R-NC) introduced a bill called the “Online Accessibility Act” (H.R. 8478) (the “OAA”) which would amend the ADA to add a new Title VI prohibiting discrimination by “any private owner or operator of a consumer facing website or mobile application” against individuals with disabilities. The OAA would also establish web accessibility compliance standards for consumer facing websites and mobile apps and create a mandatory administrative process that persons injured by allegedly inaccessible websites and mobile apps must use before they can file a lawsuit.  Here is a summary of the bill and our initial thoughts on the matter.Key Provisions of the OAACompliance Standard.  Under the bill, covered entities defined as “any private owner or operator of a consumer facing website or mobile application” can comply with the ADA with respect to their consumer facing websites and mobile applications by one of the two following ways: (1) Substantial Conformance” with WCAG 2.0, Level A and AA.  A website or mobile application would be considered compliant with the ADA if it is in “substantial compliance” with the Web Content Accessibility Guidelines (WCAG) 2.0, Level A and AA, or any subsequent update, revision, or replacement published by the World Wide Web Consortium (the international organization that develops the WCAG technical guidelines).  (2) “Alternative Means of Access” Acceptable.  A private entity that owns or operates a consumer facing website or mobile app that is not in “substantial compliance” with WCAG 2.0 A and AA could comply with the ADA by providing “alternative means of access to individuals with disabilities that is equivalent to access the content available on such website or mobile application.”  The bill tasks the Architectural and Transportation Barriers Compliance Board (the “Access Board”) with the job of defining the terms “substantial compliance” with WCAG 2.0, Level A and AA, “alternative means of access,” and “consumer facing website or mobile application.”  The Access Board would also develop regulations for the implementation of the OAA’s compliance standard.  The bill also directs the Access Board to “include flexibility for small business concerns.”Exhaustion of Administrative Remedies Required Prior to Filing a Civil Lawsuit.  As drafted, the bill would require aggrieved persons with a disability to exhaust their administrative remedies before bringing a civil action.  To do so, the individual must first provide notice to the owner or operator of the consumer facing website or mobile app of the fact that its website or mobile application does not comply with the WCAG 2.0 AA (or later version) (“accessibility standard”).  The owner or operator would then have 90 days to bring its website or mobile app into compliance with the accessibility standard.If the owner or operator fails to bring its website or mobile app into compliance with the accessibility requirements described above within the 90 day notice period, the individual may then file an administrative complaint with the Department of Justice (“DOJ”) within 90 days after the notice period expires.  The DOJ would have 180 days to complete its investigation, at which point DOJ could initiate a civil enforcement action against the business in “any appropriate United States district court.”  The individual may only bring a lawsuit after the end of the 180-day period if the DOJ chooses not to do so.  In a lawsuit brought by DOJ, the court may order compliance with law and, monetary damages (but not punitive damages), and assess a civil penalty not exceeding $20,000 for a first violation, or $50,000 for any subsequent violation.  In considering civil penalties, the court would be required to consider “any good faith effort or attempt to comply” with the bill’s requirements.Only if DOJ does not complete its investigation within 180 days, or if DOJ finds that there is a violation but decides not to initiate its own enforcement action, may an individual file a private civil lawsuit against the owner or operator for non-compliance with the ADA.  The bill explicitly states that this civil action is “the sole and exclusive remedy for any person aggrieved by the failure of any consumer facing website or mobile application to meet the requirements” of the Act.Our Initial Observations.The definition of a “consumer facing website” as “any website that is purposefully made available to the public for commercial purposes” is rather vague.  Would it apply to a website or mobile app that sells goods or services only to other businesses, for example?  The bill would apply to a private entity that is an “owner or operator of a consumer facing website.”   This language would seem to cover companies that host or maintain websites on their platforms for private businesses.  Thus, the OAA, if enacted, could cover more entities than just public accommodations that are currently the targets of website and mobile app accessibility lawsuits.Although the DOJ can obtain injunctive relief, damages, and a civil penalty in an enforcement action, the bill does not say what relief would be available to a private litigant.  In addition, the maximum civil penalty that can be obtained by the DOJ under this new Title VI would be significantly less than the maximum for other types of discrimination under Title III of the ADA (i.e. $96,384.00 for a first violation and $192,768 for a subsequent violation).The administrative process contemplated by the OAA would put a new and significant burden on the DOJ, which would have to investigate all complaints.   The bill’s statement that its remedies are the “sole and exclusive remedy” for aggrieved persons raises questions as to whether individuals would be prohibited from filing lawsuits to enforce state and local laws concerning the accessibility of websites and mobile applications.The bill leaves open the question of how long a “grace period” covered entities will have to come into compliance with its requirements following the issuance of regulations by the Access Board.The bill contains no defenses for covered entities, such as technical infeasibility, undue burden, and/or fundamental alteration.Response to Bill by Disability Rights Advocates.  Disability rights advocates do not seem enthusiastic about the bill.    Some advocates say that the more recent WCAG 2.1 should be the standard for compliance, not WCAG 2.0.  They also oppose an allowance for alternative means of access to online content.  Advocates have also expressed concern that the requirement to exhaust administrative remedies would limit the right of disabled people to enforce the ADA through private lawsuits.  Furthermore, the Act could prohibit individuals from enforcing state and local disability access rights laws.  Additionally, advocates believe that limiting the Act to websites and mobile apps puts at risk their efforts to use the ADA to increase accessibility of other technologies such as kiosks and employee software.What’s Ahead?  Past attempts to amend the ADA to address the concerns of private entities faced with a deluge of lawsuits (e.g. the ADA Education and Reform Act and the ADA Notification Act) have not gained much traction because they did not receive support from disability rights advocates.  However, we think both businesses and advocates would like to see clear legal requirements on this issue rather than the confusing and constantly evolving patchwork of court decisions that exists today.  Thus, the bill is certainly a step in the right direction. By Seyfarth Shaw LLP on September 18, 2020Posted in ADA Title IIIBy Myra Villamor, Minh Vu, and Kristina LauneySeyfarth Synopsis: The Ninth Circuit Court of Appeals adopts a burden-shifting framework for analyzing claims involving the removal of pre-ADA barriers which requires the plaintiff to “plausibly show how the cost of removing the architectural barrier at issue does not exceed the benefits under the circumstances.”Under the Americans with Disabilities Act (ADA), public accommodations must remove architectural barriers that pre-date the ADA and have not been altered if the removal is “readily achievable.”  The ADA and its regulations do not state which party bears the burden of showing that barrier removal is or is not readily achievable, so courts have had to devise their own approaches.On September 9, 2020, in Lopez v. Catalina Channel Express, Inc., the Ninth Circuit ruled that to survive summary judgment, a plaintiff bears the initial burden to “plausibly show how the cost of removing the architectural barrier at issue does not exceed the benefits under the circumstances.”  And while a plaintiff  is not required – in meeting its initial burden – to address in detail each of the four factors for determining whether barrier removal is “readily achievable,” the Ninth Circuit noted that “it is in plaintiffs’ best interest to submit as much evidence as possible pertaining to each of the [four] factors in their initial barrier-removal proposal. Otherwise, plaintiffs risk meeting their initial burden but failing to ultimately prevail on summary judgment.” Those four factors are:(A) “the nature and cost of the action needed”(B) “the overall financial resources of the facility or facilities involved in the action; the number of persons employed at such facility; the effect on expenses and resources, or the impact otherwise of such action upon the operation of the facility;”(C) “the overall financial resources of the covered entity; the overall size of the business of a covered entity with respect to the number of its employees; the number, type, and location of its facilities; and”(D)  “the type of operation or operations of the covered entity, including the composition, structure, and functions of the workforce of such entity; the geographic separateness, administrative or fiscal relationship of the facility or facilities in question to the covered entity.”42 U.S.C. § 12181(9)(A)–(D).The Ninth Circuit then stated that “[if]f the plaintiff makes a plausible showing that the requested accommodation is readily achievable, the burden shifts to the defendant to counter the plaintiff’s initial showing, and at that point the district court is required under the statute to weigh each of the § 12181(9) factors to determine whether removal of the architectural barrier is readily achievable or not.”Even though the district court had applied a more stringent standard in granting summary judgment to the defendant, the Ninth Circuit nonetheless affirmed the district court’s conclusion that the plaintiff failed to meet his initial, less onerous, burden under its newly-articulated burden shifting framework.  Specifically, the plaintiff alleged that the restroom door on defendant Catalina Channel Express’s Jet Cat Express passenger ship was too narrow for his wheelchair to enter, in violation of the ADA and California Unruh Civil Rights Act. On cross-motions for summary judgment, Lopez submitted a scanty two-page declaration from a “private investigator” stating the doorway to the restroom could be widened to 34-inches if the sliding door was not blocked by a metal pin on top of the door. The Ninth Circuit concluded that Lopez failed to meet his initial burden of establishing that a suggested method of barrier removal was readily achievable, and found that the private investigator’s declaration “only identifies the problem,” but “does not bear on the question of whether remediating the problem is readily achievable.” The Ninth Circuit found the plaintiff provided no evidence as to how much the requested barrier removal might cost, much less any evidence showing that the cost of widening the restroom doorway does not exceed the benefits (i.e., that widening the restroom doorway was readily achievable).The Ninth Circuit’s decision on this point did not conclude the matter, however. The Ninth Circuit held that the plaintiff could still prevail if he could show that Catalina could have made the restroom available to Lopez through alternative methods without much difficulty or expense. Because the district court did not evaluate this issue, the Ninth Circuit remanded and directed the district court to determine this remaining question, as to whether there is sufficient evidence that “Catalina could have made the restroom available to Lopez through alternative methods without much difficulty or expense.”There are two key takeaways for businesses from this decision:  In considering whether or not the removal of a pre-ADA barrier is readily achievable, a business must carefully analyze and document the four factors set forth in the regulation and weigh the cost and benefit of the barrier removal. Additionally, it must determine if there are alternative ways to make the goods and/or services in question accessible to the plaintiff without much difficulty or expense. If there are, those alternative methods should be implemented.By Seyfarth Shaw LLP on September 2, 2020Posted in ADA Title IIIBy Minh N. Vu, Kristina Launey, and Susan RyanSeyfarth synopsis:  Businesses enjoyed a brief reprieve in ADA Title III lawsuits while the country was shut down but the rest of the year will most likely be business as usual.   In the first six months of 2020, 4,759 ADA Title III lawsuits were filed in federal court, as compared to 5,592 of such suits filed in the first six months of 2019, for a decrease of 15 percent during this period.  This downtick is largely due to the significantly fewer  filings in April and May of 2020, when most of the country was shut down.  Based on this data, we predict that 2020 will end with fewer lawsuits than in 2019, but expect numbers to pick back up with the country and courts slowly reopening, for a year-end decrease that will likely be much less than 15 percent.[Total Number of ADA Title III Federal Lawsuits Filed Each Year, January 1, 2020 June 30, 2020; 2013: 2,722; 2014: 4,436 63% increase over 2013; 2015: 4,789 8% increase over 2014; 2016: 6,601 38% increase over 2015; 2017: 7,663 16% increase over 2016; 2018: 10,163 33% increase over 2017; 2019: 11,053 9% increase over 2018; 2020: 4,759 as of 6/30/20]The number of lawsuits filed per month dipped significantly in April and May with 572 and 538 lawsuits, respectively and then rebounded in June and July.  July saw 954 lawsuits filed the second highest monthly number in 2020.  July’s sharp uptick suggests that federal courts will be very busy with ADA Title III lawsuit filings for the rest of 2020.[Total Number of Federal ADA Title III Lawsuits Filed Per Month January 1, 2020 July 31, 2020: January: 973; February: 930; March: 888; April: 572; May: 538; June: 858; July: 954]California (2,702 lawsuits), New York (756 lawsuits), and Florida (574 lawsuits) continue to lead the country in the number of federal filings. The top ten states for federal ADA Title III filings has changed only slightly, with the addition of Massachusetts which has had 39 lawsuits this year.  Alabama fell out of the top ten with only 18 lawsuits.[Top 10 States with Federal ADA Title III Lawsuits Filed January 1, 2020 June 30, 2020: California: 2,702; New York: 756; Florida: 574; Texas: 136;  Georgia: 120; Illinois: 85; Pennsylvania: 72; Massachusetts: 39; Colorado: 37; New Jersey: 26]What are these lawsuits about?  Based on the many cases we see in our practice, most cases concern allegedly inaccessible physical facilities or websites, or hotel reservations websites that do not have sufficient accessibility information about their accessible rooms and common areas.  Some plaintiffs have also filed suit about strict COVID-19 mask policies, though it seems most plaintiffs’ firms are waiting to see what happens in those cases before diving in.Our Methodology:  Our overall ADA Title III lawsuit numbers come from the federal court’s docketing system, PACER.  However, because the area of law code that covers ADA Title III cases also includes ADA Title II cases, our research department reviews the complaints to remove those cases from the count.By Minh N. VuSeyfarth Synopsis:  California state courts are becoming an even friendlier jurisdiction for plaintiffs filing lawsuits about allegedly inaccessible websites.The U.S. Court Appeals for the Ninth Circuit has longstanding precedent that only businesses with a brick and mortar location that customers can physically visit are “public accommodations” covered by Title III of the Americans with Disabilities Act.  Following this precedent, in 2015, it held that Title III does not apply to online-only businesses such as eBay and Netflix.  The Ninth Circuit is not alone in its position—the Eleventh Circuit has reached the same conclusion.  However, other circuits, such as the First Circuit, have concluded that businesses do not need to have a physical place of business where customers go to qualify as public accommodations so long as they fall within the twelve categories of businesses identified by the ADA as “public accommodations.”  While the First Circuit did not reach this conclusion in a website accessibility case, district courts in the First Circuit have applied this precedent to hold that online-only businesses are covered by Title III of the ADA.Because neither the U.S. Supreme Court or the California Supreme Court have considered the issue of whether an online-only business is covered by Title III of the ADA, California state court judges have latitude in deciding this issue.  Last week, California Superior Court Judge Gregory Kiosan decided  that Title III of the ADA does cover online-only businesses and refused to dismiss a lawsuit filed against an online-only video game retailer.  In December 2019, California Superior Court Judge Angel Bermudez also refused to dismiss a lawsuit against an online-only business on the same basis.California Superior Court judges are opining on federal law because a plaintiff can establish a violation of California’s Unruh Act by demonstrating a substantive violation of Title III of the ADA. Thus, in deciding website accessibility cases under Unruh, California judges must determine whether online-only businesses are covered under the federal law.Although the decisions of these two judges are not binding on any other California judges and may ultimately be overruled by a California appellate decision, they suggest that California state court may be a good choice for plaintiffs seeking to sue an online-only business for an allegedly inaccessible website, and provide a likely explanation for why the number of website accessibility lawsuits filed in federal courts in California is fewer than one might expect.Edited by Kristina LauneyBy John W. EganSeyfarth Synopsis: A new law in Florida takes aim at fraudulent requests for emotional support animals in housing by requiring that residents do more than provide online animal “registrations” or certificates, mandates that health care providers have personal knowledge of their patients’ disabilities and related needs before supporting these requests under threat of professional discipline, and even provides for criminal penalties.Florida recently enacted a law intended to combat fraudulent requests for emotional support animals in housing.  Effective July 1, 2020, SB 1084 provides that animal registries, certifications, and similar online documents are insufficient to support these requests.  Significantly, the law also provides a basis for professional discipline for health care practitioners that issue supporting documentation without personal knowledge.  Further, it imposes criminal penalties for those who make or support fraudulent requests for these animals in housing.What is an emotional support animal?  SB 1084 defines it as “an animal that does not require training to do work, perform tasks, provide assistance, or provide therapeutic emotional support by virtue of its presence which alleviates one or more identified symptoms or effects of a person’s disability.”  Contrast that with a service animal which, by definition, must be trained to perform work or tasks for a person with a disability.The federal Fair Housing Act has always required housing providers to accommodate emotional support animals.  SB 1084 adopts that requirement under Florida law and provides guidance about the documentation that a housing provider can ask for when considering a request to accommodate an emotional support animal.For example, a housing provider can only request medical support when the resident’s disability is not readily apparent, and it cannot require disclosure of the resident’s diagnosis or severity of a disability.  If the evidence that the resident provides is sufficient, then the provider cannot charge a fee or higher rent based on the animal (but it can assess charges for property damage caused by that animal).  Additionally, consistent with federal rules, the Florida law provides that a housing provider is under no obligation to accommodate an animal that poses a direct threat to the health or safety of others, where that threat cannot be reduced or eliminated by another reasonable accommodation.The Florida law goes further than federal law, however, to address what type of supporting evidence is and is not legally sufficient for emotional support animal requests.  Also, unlike federal law, SB 1084 imposes penalties on those who make (and support) fraudulent requests.  Here are the key aspects:Online Registries and Certifications Insufficient.  An emotional support animal registration of any kind, including an identification card, patch, certificate, or similar registration document obtained from the internet is not, by itself, sufficient to show a resident disability or need for the animal.  For health care or other practitioners to provide reliable information about resident disabilities and emotional support animals, they must have personal knowledge of the resident’s disability and be acting within the scope of their practice to provide the supporting information.Out-of-State Support Limited.  The law places limitations on out-of-state health care and other practitioners (excluding licensed telehealth providers) that certify these requests.  To document that a resident has a disability, an out-of-state practitioner must have provided in-person care or services to the resident on at least one occasion.Potential for Professional Discipline For Health Care Providers.  Offering information about either a person’s disability or disability-related need for an emotional support animal, without personal knowledge, is grounds for disciplinary action.Criminal Penalties.  A person who falsifies information or documents, or knowingly provides fraudulent information or documents, to support an emotional support animal request, or who otherwise knowingly and willfully misrepresents their disability status or needs, commits a misdemeanor offense in the second degree.  A convicted offender must also perform 30 hours of community service for an organization that serves people with disabilities, or another organization designated by the court.*                  *                  *Reports of outlandish or exotic animals being passed off as emotional support animals on airplanes or in housing, while often entertaining, obscure the legitimate function of these animals for people with disabilities.  Emotional support animals are not pets, and often provide critical assistance for people with disabilities.  Also, “no pet” rules in housing serve the legitimate function of reducing animal hair and dander in living spaces for the benefit of residents with allergies and other respiratory disabilities and impairments.The Florida law is a welcome development for housing providers that seek to abide by their “no pet” rules, and make exceptions only for non-fraudulent requests by residents with disabilities.  Other jurisdictions facing similar abusive practices may take note and consider whether to implement their own legislation in the future.Edited by Minh N. VuSeyfarth Synopsis: The ADA Title III team launches the final installment of its 3-part video series containing 30 tips for businesses on how to better serve individuals with disabilities. This final segment addresses how to effectively and appropriately communicate with individuals with disabilities.We are two days away from the 30th Anniversary of the ADA.  What better way to say “Happy Birthday” to our favorite law than to provide 10 tips on how to effectively and appropriately communicate with people with disabilities.  Check it out here.Interacting with a person with a disability need not be intimidating or confusing.  Our final installment of ADA 30: 30 Tips for 30 Years provides guidance for a variety scenarios to ensure that individuals with disabilities have a great experience at your place of business.We hope you find this final segment fun and educational.If you haven’t seen them, be sure to check out Part 1 (facilities) and Part 2 (reasonable modifications of policies and procedures) of our series.An audio description of Part 3 is available here.Seyfarth Synopsis: The ADA Title III team launches the second installment of its 3-part video series containing 30 tips for businesses on how to better serve individuals with disabilities. This video covers reasonable modifications to normal policies, practices and procedures.Take a look at Part 2 of our video series!If you enjoyed Part 1 of ADA 30:  30 Tips for 30 Years video, you are in for a treat because our attorneys worked hard to make Part 2 even more entertaining while still providing you useful tips.  This video addresses the obligation of businesses to make reasonable modifications to their policies, practices, and procedures to ensure access to their goods, services, and privileges by individuals with disabilities and contains tips about service animals, miniature horses, emergency evacuations, event ticketing, hotel reservations, food allergies, non-traditional mobility devices, and so much more.An audio description of Part 2 is available here.We hope you enjoy the video and maybe learn something new.Seyfarth Synopsis: The ADA Title III team makes a 3-part video series containing 30 tips for businesses on how to better serve individuals with disabilities.July 26, 2020, is the 30th anniversary of the Americans with Disabilities Act.  To mark this important occasion, attorneys from Seyfarth’s ADA Title III Team put on their best work-from-home shelter-in-place attire to create a video series of 30 compliance tips for businesses.  In each of the next three weeks, we will release a video containing 10 tips based on compliance issues that we most often see in our practices.  Today’s video, Part 1, covers accessible facilities.  Next week, Part 2 will cover reasonable modifications to policies, practices and procedures, and the following week, Part 3 will address effective communication with people with disabilities.We hope you enjoy this video series as much as we enjoyed making it.  We are especially grateful for the video production and editing skills of our colleague Kevin Fritz who pulled this all together.An audio description of Part 1 is available here.Seyfarth Synopsis: A second California Court of Appeal rules that websites with a nexus to a physical place of business are covered by Title III of the Americans with Disabilities Act, while a California trial court insists that online-only websites are covered as well, contradicting the U.S. Court of Appeals for the Ninth Circuit.On June 18, 2020, the California Court of Appeal for the Fourth Appellate District became the second California Court of Appeal to rule, in Martinez v. San Diego County Credit Union (SDCCU), that websites with a nexus to a physical place of business where customers go are covered by Title III of the Americans with Disabilities Act (ADA).  The first decision, in Thurston v. Midvale, was issued in September 2019 by the Second Appellate District Court of Appeal and affirmed the trial court’s ruling that Midvale violated the ADA and California Unruh Civil Rights Act by having a restaurant website that could not be used by a blind person with a screen reader. The SDCCU decision reversed a trial court’s decision that the website of a credit union with physical banking location was not a “public accommodation” under the ADA. These two California state court appellate decisions are consistent with the position of the federal U.S. Court of Appeals for the Ninth Circuit, which has also held that a website with a nexus to a physical place of business where customers go is covered by the ADA on the theory that the website is a service or benefit of a place of public accommodation.The SDCCU decision is noteworthy because the Court of Appeal discussed at length what it means to have a “nexus” to a physical place of business. It noted that the courts have not yet articulated a single standard on this issue, but that most federal circuits and one California Court of Appeal (Midvale) have found that a nexus exists if the facts show the website “connect[s] customers to the goods and services of [the defendant’s] physical” place.  This standard is much less demanding standard than in, say, the 11th Circuit, which requires plaintiffs seeking to bring ADA claims about inaccessible websites must show that a barrier on the website prevented them from enjoying the goods and services of that physical place.The SDCCU Court of Appeal expressly withheld its opinion on whether a website with no nexus to a physical place (i.e. an online-only business) is covered by the ADA since the defendant credit union had a physical location.On that question, at least one California state trial court (in Riverside County) has (recently) decided that an online-only business is covered under Title III of the ADA.  In Martinez v. Kydia Inc., the trial court acknowledged the U.S. Court of Appeals for the Ninth Circuit had reached the opposite conclusion in several cases but chose not to follow these holdings. Instead, the Court of Appeal framed the issue as “whether equality applies to a non-physical marketplace within the meaning of Title III of the ADA.” The court noted that there is “no direct guidance in California through the district courts”, and that it was “not persuaded” by the Ninth Circuit’s Domino’s (and Target) decision because there was a nexus in those cases, before examining decisions in out-of-state district courts on the issue. The SDCCU Court of Appeal cited dicta in the Thurston v. Midvale Court of Appeal decision that “Congress intended the ADA to ‘keep pace with rapidly changing technology’ and “[e]xcluding websites just because they are not built of brick and mortar runs counter to the purpose of the statute.”The takeaway from these cases is that in California state and federal courts, the websites of brick and mortar businesses falling into the definition of a “public accommodation” under Title III of the ADA are covered by the law. Whether online-only businesses are covered by Title III of the ADA remains an open question in California state court, with at least one trial court now saying the answer is yes.Edited by Minh N. VuSeyfarth’s ADA Title III team consists of attorneys with extensive experience in ADA Title III litigation located in many offices across the United States, including California where plaintiffs are most active. With additional litigators admitted to practice in virtually every jurisdiction in the country, we have the resources to defend our clients against lawsuits and investigations on a nationwide basis and provide consistent and efficient service in national engagements. We have successfully defended against or resolved hundreds of lawsuits brought under Title III of the ADA and applicable state laws.

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