White Obtains Significant ADA, Title III Ruling
December 29, 2011
New Orleans, La. – Ted White, a partner
with Deutsch, Kerrigan & Stiles in New Orleans, recently obtained a
significant defense ruling in two related Americans with Disabilities Act, Title
III cases in the Northern District of California. The cases involve allegations
of non-accessibility at the Ritz-Carlton hotel in Half Moon Bay. Mr. White
represents the current owner of the hotel, SHC Half Moon Bay,
LLC.
Two plaintiffs filed
separate suits against the current owner and operator of the Ritz-Carlton, which
opened ten years after the ADA became law, alleging the existence
of various access barriers at the hotel. The current owner, SHC, purchased the
hotel from the original developer three years after the hotel opened.
The plaintiffs contend that SHC, as the current owner of the hotel, must bring the
hotel into new construction compliance under the ADA because the hotel was
designed and constructed after the effective date of the Act. SHC countered
that since it did not participate in the original design and construction of the
hotel it could not be held liable for violations of the Act's new construction
provisions. SHC's position was that it had readily achievable barrier removal
obligations and not new construction obligations. Readily achievable barrier
removal is a considerably lower standard than new construction requiring only
that access barriers be removed when it is easily accomplished without much
difficulty or expense. The difference between the two standards in terms of the
hard cost of construction and overall financial impact to hotel operations can
be significant.
Mr. White argued that since the
current owner did not participate in the original design and construction of the
hotel that it did not discriminate against the plaintiffs under the new construction
provisions of the ADA. Many thought this to be a novel argument without much
chance of success as there has only been one reported case on this issue during
the 20 year history of the ADA. Fortunately, the Court agreed with SHC's
position and ruled that because the current owner had no involvement in the
original design and construction of the hotel the plaintiffs could not sue it
for "the hotel's alleged nonconformity with the 1991 standards for design and
construction." In other words, the Court found no successor liability under
the new construction provisions of the Act when the subsequent purchaser had no
involvement in the building's original design and construction. This is a major
victory for owners, operators, lessors and lessees who purchase existing
properties as their ADA liability should now be limited to readily achievable
barrier removal rather than having to bring the existing building up to new
construction standards.
About Deutsch, Kerrigan &
Stiles
Deutsch, Kerrigan & Stiles, L.L.P. is a premiere regional
law firm concentrating in legal counseling and complex, high-stakes litigation
defense. The firm is on the forefront of the industries it serves and prides
itself on unwavering responsiveness to client needs. Deutsch, Kerrigan &
Stiles consists of approximately 60 attorneys practicing in the areas of Civil
Litigation, Commercial Transactions & Litigation, Construction, Labor &
Employment, Marine & Energy, Professional Liability, and Toxic Tort &
Environmental Law from offices in New Orleans, Louisiana; Monroe, Louisiana; and
Gulfport, Mississippi.
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