The Americans with Disabilities Act (ADA) was enacted to ensure equal access and opportunity for individuals with disabilities. While the law plays a critical role in advancing accessibility, in recent years it has also become the basis for a surge of opportunistic lawsuits—many of which target real estate owners, operators, and investors.
The Rise of Nuisance ADA Claims
Certain plaintiffs and their attorneys have turned ADA enforcement into a business model, filing hundreds of lawsuits over minor, often technical, violations. Common examples include:
- Improper signage placement
- Slight slope discrepancies in ramps
- Door thresholds that are a fraction of an inch out of compliance
These claims rarely seek to improve accessibility. Instead, they are designed to extract quick settlements and impose costly burdens on property stakeholders.
For real estate sponsors and investors, ADA litigation is more than an operational headache—it’s a financial and reputational risk.
- Financial Exposure: Even small violations can lead to expensive lawsuits and settlements.
- Reputational Harm: Being named in repeated accessibility lawsuits can negatively affect investor confidence and public perception.
- Deal Disruption: Ongoing litigation can delay closings, financing, or redevelopment projects.
Proactive Risk Management
Fortunately, there are steps sponsors and investors can take to mitigate risk:
- Conduct Regular ADA Audits: Engage professionals to evaluate compliance across your portfolio.
- Maintain Documentation: Keep thorough records of inspections, remediation, and corrective action.
- Educate Staff & Partners: Ensure property managers and contractors understand ADA requirements.
- Seek Legal Guidance Early: Proactive counsel can identify vulnerabilities before they become costly claims.
The ADA remains an essential tool for ensuring accessibility, but sponsors and investors must also recognize how it can be misused. By staying proactive, conducting regular compliance checks, and working closely with experienced legal counsel, stakeholders can both protect their investments and ensure their properties remain accessible for all.
