Managing Compliance Risks From Opportunistic Litigation Under the Americans with Disabilities Act

The Americans with Disabilities Act (ADA) was enacted to expand equal access and opportunity for people with disabilities, but its application has also produced a wave of opportunistic litigation. In a recent article, Joshua S. Bauchner of Mandelbaum Barrett PC explains how certain plaintiffs and attorneys have turned ADA enforcement into a business model, targeting real estate owners, operators, and investors with lawsuits over minor or technical violations.

Examples include improperly placed signage, small slope discrepancies in ramps, or thresholds that are marginally out of compliance. These claims often do not aim to improve accessibility but instead seek quick settlements, imposing significant burdens on property stakeholders.

For sponsors and investors, the risks extend beyond compliance. Bauchner notes that ADA-related litigation can result in substantial financial exposure from settlements and legal costs, as well as reputational harm that undermines investor confidence. Moreover, litigation may delay financing, closings, or redevelopment projects, disrupting deal flow and creating additional uncertainty.

To manage these risks, Bauchner emphasizes the importance of proactive compliance. Regular ADA audits conducted by qualified professionals, supported by thorough documentation of inspections and corrective action, can reduce exposure. Educating staff and partners on ADA obligations further strengthens compliance, while early legal guidance helps identify vulnerabilities before they lead to costly disputes.

The Americans with Disabilities Act remains an essential tool for advancing accessibility; however, Bauchner emphasizes that real estate stakeholders must understand how the misuse of the law can create liability. A proactive compliance program not only protects investments but also supports the broader goal of maintaining accessible and inclusive properties.