Posts Tagged ‘ADA filing mills’

Ninth Circuit: Molski “Plainly lied”

We’ve been covering the exploits of professional ADA plaintiff Jarek Molski and his lawyer Thomas Frankovich for a long time now (See Aug. 3, Mar. 23, many others). When last we checked, Molski/Frankovich were appealing a federal judge’s finding in Molski v. Evergreen Dynasty Corp. that they were vexatious litigants; the designation meant that they couldn’t file any more ADA lawsuits in the Central District of California without first getting permission from the court.

Last week, the Ninth Circuit issued an opinion (PDF) which upheld the finding in its entirety. The only quirky part of the case was that it was likely that many of the establishments sued by Molski/Frankovich at least technically probably had violated the ADA by not complying with its vague, onerous requirements. But the Ninth Circuit had no problem getting beyond that:

Frivolous litigation is not limited to cases in which a legal claim is entirely without merit. It is also frivolous for a claimant who has some measure of a legitimate claim to make false factual assertions. Just as bringing a completely baseless claim is frivolous, so too a person with a measured legitimate claim may cross the line into frivolous litigation by asserting facts that are grossly exaggerated or totally false.

And for some reason, neither the District Court nor the Ninth Circuit were impressed with Molski’s factual assertions:

However, it is very unlikely that Molski suffered the same injuries, often multiple times in one day, performing the same activities—transferring himself from his wheelchair to the toilet or negotiating accessibility obstacles. Common sense dictates that Molski would have figured out some way to avoid repetitive injury-causing activity; even a young child who touches a hot stove quickly learns to avoid pain by not repeating the conduct.

The Ninth Circuit was not any more complimentary towards Frankovich:

When a client stumbles so far off the trail, we naturally should wonder whether the attorney for the client gave inadequate or improper advice.

The court also found significant that Frankovich may well have broken legal ethics rules by trying to intimidate defendants into settling without hiring lawyers and giving them (bad) legal advice.

This isn’t necessarily the end for Molski/Frankovich. The vexatious litigant order applies only to the federal courts — in fact, only the federal courts in the Central District of California — and does not prevent them from filing suit; it only requires them to seek permission of the court first.

Read On…

California ADA lawsuit mills: “Wheelchairs of fortune”

Serial ADA litigant (and Overlawyered repeat offender) Thomas Frankovich was profiled recently in SF Weekly. Overlawyered readers will be familiar with just about everything in there, from Frankovich’s extortionate tactics to his collaboration with professional plaintiffs like Jarek Molski, to his use of front groups in an attempt to make his litigiousness seem like a public service. (Frankovich, incidentally, does not work in a wheelchair accessible office.)

Matthew Hirsch of LegalPad reports that Frankovich is attempting to rehabilitate his image before the Ninth Circuit rules on whether he, and his fellow traveler Molski, are vexatious litigants:

Starting this month, Frankovich and a major client are offering defendants a deal: “You make your [entrance] doorway accessible, and we will waive any and all claims — including money damages,” he said.

Yes, but Frankovich is a lawyer, so be sure to read the fine print:

Frankovich said his clients who are affiliated with DREES will offer the front door deal if they are visiting only to check out the entrance. But if they spot a door that wheelchair users can’t open, then they go inside to shop and notice more problems, “that becomes something different,” Frankovich said, and the deal is off.

Welcome Financial Week readers

Reporter Jay Miller quotes me and mentions this site in an article on ADA mass-filing operators; the piece should be available on a registration basis for a few more days before becoming subscriber-only (Jay Miller, “Flood of lawsuits filed under Disabilities Act”, Financial Week, May 28). This site has been covering ADA filing mills for years and years; see Apr. 15, Mar. 27, and many other entries on our disabled-rights page.

May 8 roundup

April 24 roundup

A week in the life of Jarek Molski

As Ted reported Mar. 23, a Ninth Circuit panel lately took an indulgent line toward notorious ADA mass filer Jarek Molski, reversing a ruling by Judge Tevrizian of the district court. (More on that ruling from Law.com). “Army Lawyer” in the comments at Patterico (via Coyote) passes along this classic bit of Molskiana (from the earlier round of litigation before federal judge Rafeedie):

Although this complaint appears credible standing alone, its validity is undermined when viewed alongside Molski’s other complaints. In Molski v. Casa De Fruta, L.P., Case No. C04-1981 (N.D. Cal. 2004), Molski alleges that he sustained nearly identical injuries on the exact same day, May 20, 2003. In Casa de Fruta, Molski alleges that he and significant other, Brygida Molski, patronized Casa de Fruta for the purpose of wine tasting….

It would be highly unusual — to say the least — for anyone to sustain two injuries, let alone three, in a single day, each of which necessitated a separate federal lawsuit. But in Molski’s case, May 20, 2003, was simply business as usual. Molski filed 13 separate complaints for essentially identical injuries sustained between May 19, 2003 and May 23, 2003. The Court simply does not believe that Molski suffered 13 nearly identical injuries, generally to the same part of his body, in the course of performing the same activity, over a five-day period. This is to say nothing of the hundreds of other lawsuits Molski has filed over the last four years, many of which make nearly identical allegations.

“It’s ‘my policy to follow the ethical rules'”

Last week, Ted posted a court decision about a lawyer/client team who have turned the Americans with Disabilities Act — in theory, a law designed to protect actual consumers — into a full-time career, patronizing businesses for the specific purpose of being able to sue them. Not all such lawyer/client teams bother to even take the step of patronizing the businesses, however; some just skip the damages and go right to the extortion, hoping the defendants will pay rather than spend the money to defend themselves.

Many times, their business model works, but occasionally, it backfires, as it did last week on serial ADA litigant Theodore Pinnock. (Technically, Pinnock is the attorney, not the plaintiff. But why split hairs? The plaintiffs, Delores Jackson and the imaginary organization she “represents,” the Association of Women with Disabilities Advocating Access, are just fronts for Pinnock.) On Friday, a federal judge in San Diego sanctioned Pinnock, ordering him to take an ethics class and pay $15,000 in attorneys fees to Marcos Mout, a defendant he had sued last October. Mout owned a convenience store, and was sued because the store was allegedly inaccessible to the disabled. Well, not quite:

Jackson, who uses a walker, said she had “researched” the store and had photographic evidence of numerous violations. In the complaint, she said she had intended to patronize the store but would have been thwarted by problems with signage, the entrance door, interior paths, counter height, parking and the restroom, among many things.

The businessman’s attorney countered that the convenience store wasn’t even open to the public at the time Jackson was allegedly denied access, having been seriously damaged in December 2004 by a flood.

Mitch Wallis, attorney for convenience store owner Marcos Mouet, also told the court that the small store, which remains shuttered, didn’t even have a public restroom. Jackson’s lawsuit also alleged that interior pathways weren’t wide enough, but Mouet’s attorney noted that the shelves had been pushed against the wall to fix the flood damage.

Yes, but aside from those issues…

Incidentally, the Bizarro-Overlawyered crowd will tell you that frivolous suits are easily, quickly, and cheaply disposed of by the courts; this case illustrates yet again how badly they misunderstand the nature of the legal system. Because the suit against Mout’s convenience store made superficially legitimate allegations, it cost Mout at least $15,000 to defend the suit. (He actually claimed legal costs of $38,000 in making his motion for sanctions, but the court found that $15,000 was a more reasonable figure.) And that was for a suit that lasted “only” five months.

Previous coverage of Pinnock: Apr. 2006

Ninth Circuit defends ADA filing mill, resuscitates Molski suit

We’ve had many stories on frequent filer Jared Molski, the vexatious litigant who has filed hundreds of ADA actions in the last five years, and his lawyer Thomas Frankovich, briefly suspended for related ethical violations. Today the Ninth Circuit came down with an opinion in the case of Molski v. M.J. Cable:

Molski, who is paraplegic, sued Cable’s for violations of the
Americans with Disabilities Act (“ADA”) and California’s
Unruh Civil Rights Act (“Unruh Act”), alleging that Cable’s
failed to accommodate the disabled. Although Molski provided
uncontradicted evidence that Cable’s did not identify
and remove architectural barriers, the jury returned a verdict
for the restaurant. The District Court denied Molski’s motion
for a new trial, speculating that the jury could have reasonably
concluded that because of Molski’s record of litigiousness, he
was a “business” and not an “individual” entitled to the
ADA’s protections. We reverse.

[…]

On cross examination, Molski acknowledged that: he did not complain
to any of Cable’s employees about his access problems; he
had filed 374 similar ADA lawsuits as of October 8, 2004;
Frankovich had filed 232 of the 374 lawsuits; even more lawsuits
had been filed since that date; Molski and Frankovich
averaged $4,000 for each case that settled; Molski did not pay
any fees to Frankovich; Molski maintained no employment
besides prosecuting ADA cases, despite his possession of a
law degree; Molski’s projected annual income from settlements
was $800,000; Molski executed blank verification
forms for Frankovich to submit with responses to interrogatories;
they had also filed lawsuits against two other restaurants
owned by Cable’s; they had filed a lawsuit against a nearby
restaurant; and Sarantschin obtained up to 95% of his income
from Frankovich’s firm for performing investigations for
ADA lawsuits.

The court acknowledges Molski’s notorious history as a vexatious litigant, but effectively holds that the ADA permits such strategies. That legal holding appears correct (the ability of professional litigants to extort small businesses is a statutory problem with the ADA and the Unruh Act that needs to be solved by the legislature, rather than by courts). But the jury could have chosen to disbelieve Molski’s testimony, given that Molski had the burden of proof and had substantial pecuniary motivation. The Ninth Circuit simply refuses to acknowledge this possibility in reversing the jury’s verdict. (It’s unclear whether testimony the restaurant vice president provided on cross-examination provides sufficient admissions to justify the appellate court’s decision; it is possible that this is the case.) Worse, in dicta in footnote 3, the Ninth Circuit suggests that it may have been improper for the defendants to have cross-examined Molski on his full-time litigation career because such evidence would have been “irrelevant.” (Via Bashman.)

Update: The On Point blog (sadly still missing permalinks, though now with an RSS feed) posts the trial court decision denying a new trial, which is less than absolutely persuasive.

March 19 roundup

  • More ADA filing mills: “Fuller, Fuller and Associates was once sanctioned when their client, who was alleged to be quadriplegic, walked into his own deposition.” [Childs @ MassTort]
  • Professional expert witnesses as a publicly traded multimillion dollar industry. [WSJ]
  • No accommodation needed for LSAT taker claiming ADHD. [Legal Intelligencer]
  • Homeowner’s gripe on web draws lawsuit from contractor. [WaPo]
  • Lawsuits of the future: Muslim cashier refuses to ring up bacon (if only I had thought of that when I was in high school) [Minn. Star-Tribune]
  • Neighbors feud over driveway: “three civil lawsuits, a physical altercation, a criminal indictment, [and] a court hearing over a videotape” [St. Pete. Times]
  • “Warning: Lawsuits Hazardous To Financial Health” [Forbes.com]
  • Y’know, if a man wrote a ludicrous essay to the effect that every professional women has a Lisa Nowak inside of them on the verge of erupting, that’d be the last thing he ever wrote. [Legal Times]

Update: disabled-access impresario Ted Omholt

Readers who follow the phenomenon of ADA filing mills (Dec. 7, etc.) may recall the case of West Coast attorney Theodore Omholt, who has filed hundreds of legal complaints against businesses for violations (trivial or otherwise) of disabled-access laws, which he then settles for cash. In Honolulu, according to one news report, Omholt filed 574 lawsuits. (Carolyn Said, “Controversial disability rights lawyer”, San Francisco Chronicle, Apr. 21, 2002.) Omholt then refocused his practice on California where he sent out the following letter, quoted in my article three years ago in City Journal:

I am the attorney (age 48) who for the past three years has had the privilege to represent a small action group of six wonderful individuals who use wheelchairs age 37 to 66. . . . Their shopping at inaccessible stores in San Francisco and then filing lawsuits as clients of mine against those inaccessible stores nets them each an income which makes them financially independent. For each of them, the lack of funds which used to limit them to life’s bare necessities and which plagues so many disabled individuals today has become only an unpleasant memory from the past. As a reward for implementing the law and making stores more accessible for other disabled shoppers, group members now use their stream of income to eat out at good restaurants when they want to, buy new clothes and computers and televisions and gifts for family members, travel and take vacations wherever and whenever they want to go, and live a lifestyle they could only imagine prior to joining the group. . . . The group has room for a small number of additional members. Once that small number of additional members has been selected, the group will again close to new members.

Alas, even the most thoughtfully devised business plans sometimes meet with a hitch. Reader W.R. alerts us to this copy of Supreme Court minutes (PDF) from San Francisco, dated May 10 of last year, which at page 51 reports the following:

S143253 OMHOLT ON RESIGNATION — The voluntary resignation of TED OMHOLT, State Bar No. 92979, as a member of the State Bar of California is accepted without prejudice to further proceedings in any disciplinary proceeding pending against respondent should he hereafter seek reinstatement. It is ordered that he comply with rule 955 of the California Rules of Court and that he perform the acts specified in subdivisions (a) and (c) of that rule within 30 and 40 days, respectively, after the date this order is filed.* Costs are awarded to the State Bar. *(See Bus. and Prof. Code, §6126, subd. (c).)

It’s too bad the minutes aren’t more informative about the circumstances surrounding Mr. Omholt’s voluntary resignation from the California bar. Readers familiar with the details are welcome to illuminate matters.

UPDATE: Omholt writes to dispute the accuracy of certain details in the Honolulu account; seeing no reason to doubt his word, we have revised the post to omit those details.