Americans with Disability Act (ADA) lawsuits have devolved into predatory litigation that is motivated by financial gain instead of accessibility for disabled persons, according to an attorney with the National Federation of Independent Business (NFIB)
“It was not the intent of drafters of the ADA in 1990 for an attorney to make a buck for himself,” said Elizabeth Milito, executive director of the NFIB Small Business Center.
Milito was responding to the news that attorney Scott Norris Johnson, who owned and operated Disabled Access Prevents Injury Inc (DAPI), pleaded guilty to filing a false tax return on which he underreported the income he earned from duplicate ADA lawsuits.
The complaint states that the 60-year-old Carmichael, California resident filed thousands of disability discrimination lawsuits and made a profit.
“His lawsuits were covered in the press and that generated some scrutiny because there was criticism as to whether his lawsuits were helping the disabled,” Milito told the Southern California Record. “It raised a red flag based on the number of lawsuits he filed.”
Johnson filed more than 4,000 lawsuits in federal courts naming himself as the plaintiff, according to a U.S. Department of Justice press release, and was required to report the taxable portion of the lawsuit settlements and awards he received. However, Johnson and DAPI allegedly understated the income from 2012 to 2014 and failed to pay $250,000 in taxes.
“An attorney has an ethical standard to live up to,” Milito said. “They take the bar exam and are sworn in. You are charged with enforcing the law not breaking it.”
Sentencing is scheduled for March 7, 2023, where Johnson faces a maximum penalty of three years in prison along with a period of supervised release, restitution, and monetary penalties.
“I hope it gives other lawyers who file these types of lawsuit pause and makes them think twice before they send a demand letter or serve a small business with a complaint,” Milito added. “It doesn’t benefit anyone in the disabled communities and it disadvantages business owners.”
Johnson isn't the only attorney being disciplined concerning ADA complaints.
As previously reported in the Southern California Record, Los Angeles District Attorney George Gascón sued the Potter Handy law firm alleging it was shaking down small businesses using serial filers under ADA provisions. Potter Handy law firm is accused of targeting business owners and pressuring them to settle for cash payments of $10,000 to $20,000.