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Court Watch

BY Cynthia M. Klaus
May 31, 2013

Federal Court Issues Stern Warning to Counsel for 'Parasitic' ADA Lawsuit

In Costello v. Flatman, LLC, No. 11-CV-287, 2013 U.S. Dist. LEXIS 45860 (E.D.N.Y. Mar. 28, 2013), a federal judge denied a disabled plaintiff's application for attorneys' fees under the Americans with Disabilities Act (“ADA”) and, in doing so, reprimanded the plaintiff's attorneys for filing lawsuits against multiple small-business owners with the intent not to remedy the ADA violations and make businesses more accessible to disabled persons, but rather to collect attorneys' fees. The Hon. Sterling Johnson, Jr. of the Eastern District of New York informed counsel that their “parasitic” litigation strategies would no longer be tolerated.

In Costello, the plaintiff's application for attorneys' fees followed the court's entry of default judgment against a Subway franchisee in the amount of $14.31. The wheelchair-bound plaintiff filed his lawsuit against the franchisee and others, alleging violations of the ADA because the plaintiff could not access the franchisee's Subway restaurant. On the same day that the plaintiff commenced the lawsuit, he filed seven other lawsuits against nearby businesses with similar boilerplate allegations. Subsequent to the entry of default, the plaintiff's counsel brought a motion to recover more than $15,000 in attorneys' fees purportedly incurred in prosecuting the action. The plaintiff's two attorneys, located in Florida and New York, claimed to have spent more than 35 hours in obtaining the $14.31 award, each at an hourly rate of $425.

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