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BMD Obtains Dismissal of ADA Title III Suit Against National Outlet Mall Chain

Client Alert

On January 12, 2018, Brennan, Manna & Diamond obtained the dismissal of an Americans with Disabilities Act (“ADA”) lawsuit filed against Tanger Factory Outlet Centers, Inc. in the U.S. District Court for the Western District of Michigan.

The suit, which was brought under Title III of the ADA, alleged that Tanger’s Byron Center, Michigan outlet mall contained barriers to access in violation of the ADA’s accessibility requirements. The plaintiff demanded prospective injunctive relief, including a retrofit of the entire mall, as well as expert witness and attorneys’ fees.

BMD moved to dismiss the case for lack of standing. Unlike a conventional suit, where a plaintiff seeking monetary damages must show a past injury to possess legal standing, an ADA Title III plaintiff must show a threat of prospective future harm in order to recover. Typically, this means that the plaintiff must plead (and prove) that he or she has reason to continue to visit the public accommodation in question and will continue to be injured by the facility’s alleged non-compliance with the ADA.

In its opinion granting Tanger’s Motion for Judgment on the Pleadings, United States Magistrate Judge Ellen S. Carmody held that the plaintiff’s Amended Complaint failed to adequately plead prospective future injury. In particular, the Court noted that “[v]ague and conclusory allegations that a plaintiff intends to return to a location […] are insufficient to maintain an ADA claim.” Applying this standard to the plaintiff’s Amended Complaint, the Court held that his “vague and conclusory statements regarding his alleged intent to return” to Tanger’s Byron Center property “are insufficient.” On this record, the Court found that the plaintiff “failed to sufficiently allege that he will suffer a future injury in the absence of injunctive relief.”

Recognizing the cost that ADA Title III actions pose to owners and operators of public accommodations, BMD’s experienced team of ADA litigators uses a proactive approach to seek the early and cost-effective resolution of cases before proceeding with expensive expert discovery. BMD was proud to obtain this result for Tanger Factory Outlets, one of the largest and most iconic outlet mall chains in the country.

BMD Partners Christopher Congeni and Daniel Rudary represented Tanger Factory Outlet Centers in this case. The citation for Court’s opinion is Saar v. Tanger Factory Outlet Centers, Inc., W.D. Mich. No. 1:17-cv-41, 2018 WL 387962 (Jan. 12, 2018).


Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley Bank and featured both a quote from Valley’s Senior Vice President, John Myers, and a description of the Bank’s service platform and commitment to the cannabis industry.

The End of Non-Competes? The Impact It Will Have on the Healthcare Industry

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed rule that, if enacted, will ban employers from entering into non-compete clauses with workers (the “Rule”), and the Rule would void existing non-compete agreements. In their Notice, the FTC stated that if the Rule were to go into effect, they estimate the overall earnings of employees in the United States could increase by $250 billion to $296 billion per year. The Rule would also require employers to rescind non-competes that they had already entered into with their workers. For purposes of the Rule, the FTC has defined “worker” to also include any employees, interns, volunteers, and contractors.”

2022 Healthcare Recap and 2023 Healthcare Check-Up

As the country begins to return to a new “normal” following the COVID-19 pandemic, there are many healthcare rules changing on both the federal and state levels as a result. Thus, it is important for healthcare providers and their employers to be aware of these changing rules, and any implications they may have on their practice. Look back on healthcare in 2022 and find a checklist for 2023.

Direct Support Professional Retention Payments

On December 15, the Ohio Senate and House passed House Bill 45, which authorizes the Department of Developmental Disabilities (DODD), in conjunction with the county boards of developmental disabilities, to launch their initiative to issue retention payments to Direct Support Professionals (DSPs). These retention payments will be distributed quarterly to participating home and community-based waiver providers to address the workforce crisis in the direct provider sector. Governor DeWine needs to sign the Bill to begin the payments, but he is expected to do so by the end of 2022.

Real Estate Investors Position for 2023 Opportunities

Real estate investors weathered another year in a post-pandemic world, with the year closing with yet another interest rate increase coupled with both uncertainty and heightened interest carrying into 2023. Just last Wednesday, the Federal Reserve raised its benchmark interest rate 0.50 percentage points, shifting the target range to 4.25% to 4.50%. The new level is the highest the fed funds rate has been since December 2007 and marks the seventh rate hike this year. So what does this mean to investors, brokers, lenders, and others in the real estate world? Read a few perspectives below from stakeholders familiar with our BMD clients and the markets in which they do business.