Hudson Small Business Protection Legislation passes Senate unanimously

On Wednesday, March 25, the Missouri Senate third read and passed Senate Bill 907 which creates the Act Against Abusive Website Access Litigation. The bill, sponsored by Sen. Brad Hudson, R-Cape Fair, protects small businesses from frivolous lawsuits regarding their websites.

 

“Recently, a lone attorney from the Kansas City area, and a client of his who happens to be blind, have been suing Missouri businesses alleging website non-compliance with the Americans with Disabilities Act,” Hudson said. “Hundreds of businesses have been sent demand letters alleging violations, with threats of lawsuits unless they are willing to pay settlements. Dozens of businesses, in fear of expensive court proceedings, have capitulated to this shakedown. This loophole in the law must be closed, and SB 907 does just that.”

 

The legislation provides that: The Attorney General may file a civil action against the party, attorney or law firm that initiated website access litigation for a determination as to whether such litigation is abusive. In determining whether a civil action is considered abusive, the court shall consider the totality of the circumstances to find whether the litigation was filed in good faith.

 

A defendant who receives notice of an alleged website access violation and in good faith takes substantial steps to correct the violation within 90 days shall have a rebuttable presumption that any subsequent claim for a website access violation is abusive. There shall not be a presumption if the alleged violation is not corrected within 90 days after written notice or service of the petition.

 

The Attorney General may intervene or bring an action on behalf of Missouri residents that are targets of abusive website access litigation. The Attorney General may also issue guidance as to when litigation practices are deemed abusive, but such guidance shall not preclude legitimate accessibility enforcement actions.

 

The court may award attorney's fees to the party defending against the abusive litigation. The court may also award punitive damages or sanctions not to exceed three times the amount of attorney's fees awarded by the court.

 

“People with disabilities must be assured equal opportunities to full access to public accommodation,” Hudson said. “They are empowered to enforce the right to equal access through litigation, if necessary. However, these predatory lawsuits, while brought under the guise of disability access, are abusing the system for the primary purpose of obtaining an award of attorney fees for the plaintiff, instead of remedying the alleged access violation. This bill would allow businesses 90 days to fix the issue before a lawsuit could move forward, giving small businesses more time before having to worry about expensive lawsuits. What is currently happening, with one plaintiff and one lawyer suing businesses across the state, is not an attempt to help a harmed plaintiff. It is an enrichment scheme designed to bully businesses into fear and submission. This should be one of the most common-sense pieces of legislation we pass all session. We all want those with disabilities to have access to services, but the process of getting there must be fair to our small businesses as well. I was glad to see this important bill pass the Senate, and hope for quick passage in the House.”

 

The legislation passed unanimously, and will now move to the Missouri House of Representatives where it will be carried by Rep. Brian Seitz, R-Branson.