Lucas v. Kmart Corp.

234 F.R.D. 688, 18 Am. Disabilities Cas. (BNA) 834, 2006 U.S. Dist. LEXIS 42041, 2006 WL 722166
CourtDistrict Court, D. Colorado
DecidedMarch 22, 2006
DocketNo. 99-CV-01923-JLK
StatusPublished
Cited by22 cases

This text of 234 F.R.D. 688 (Lucas v. Kmart Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lucas v. Kmart Corp., 234 F.R.D. 688, 18 Am. Disabilities Cas. (BNA) 834, 2006 U.S. Dist. LEXIS 42041, 2006 WL 722166 (D. Colo. 2006).

Opinion

ORDER GRANTING JOINT MOTION FOR PRELIMINARY APPROVAL OF SETTLEMENT AGREEMENT

KANE, Senior District Judge.

Plaintiffs Carrie Ann Lucas, Debbie Lane, Julie Reiskin, Edward Muegge, Robert Geyer, Stacy Berloff, Jean Ryan and Jan Campbell, and Defendant Kmart Corporation (“Kmart”), jointly moved the Court for an Order: (1) preliminarily approving the proposed settlement in this case as fair, reasonable and adequate; (2) finding that the proposed plan to provide notice of the settlement to the class and the proposed forms of notice satisfy the requirements of due process and F.R.C.P. 23; (3) preliminarily enjoining class members and sub-class members from asserting any of the claims to be released pursuant to the proposed settlement; and (4) scheduling a Fairness Hearing on this proposed settlement for 10:00 a.m. on July 27, 2006. After considering the parties’ brief and applicable law, the Court will grant the motion.

Applicable Law, Facts and Procedural History

I. Applicable Statutes

Title III of the ADA prohibits disability discrimination in places of public accommodation. 42 U.S.C. § 12181 et seq. The specific design criteria required by Title III are set forth in the Department of Justice Standards for Accessible Design (“Standards”). 28 C.F.R. pt. 36, app A. Title III is enforceable through a private right of action for injunc-tive relief, but Title III does not provide a damages remedy for private plaintiffs. 42 U.S.C. § 12188(a)(1) & (2). Prevailing plaintiffs are, however, entitled to attorneys’ fees. Id., § 12205. Under California law, plaintiffs may also seek injunctive relief to require compliance with California’s access standards, set forth in Title 24 of the California Code of Regulations. See, e.g., Cal. Civ.Code §§ 51(b), 52(c)(3), 54(a), 54.3(b); People ex rel. Deukmejian v. CHE, Inc., 150 Cal. App.3d 123, 197 Cal.Rptr. 484, 491 (1983).

California, Colorado, Hawaii, Massachusetts, New York, Oregon and Texas (together, the “Sub-Class States”) each has a statute pursuant to which a prevailing plaintiff in a disability discrimination action against a public accommodation can be awarded damages in an amount specified by statute without proving actual damages (“Statutory Minimum Damages”). The Statutory Minimum Damages recoverable in each state are as follows: California ($4,000);1 Colorado [691]*691($50);2 Hawaii ($1,000);3 Massachusetts ($300);4 New York ($100);5 Oregon ($200);6 and Texas ($200).7

II. History of the Litigation and Negotiation

This action was filed in 1999. Between the spring of 2000 and January 2002, the parties conducted extensive discovery, including the production of over 100,000 pages of documents and more than 50 depositions. Plaintiffs filed their motion for class certification in July 2001 and there was extensive briefing on that issue. On January 4, 2002, Kmart declared bankruptcy. During the pendency of Kmart’s bankruptcy, plaintiffs attempted unsuccessfully to lift the bankruptcy stay as it applied to this case. After Kmart emerged from bankruptcy on May 6, 2003, the parties appeared before this Court to address whether this matter had been discharged in bankruptcy. This Court ruled that the matter could proceed.

On July 13, 2005, after additional briefing, the Court granted plaintiffs’ motion for class certification and certified a nationwide class of individuals who use wheelchairs or scooters and who shop at Kmart stores (the “Nationwide Class”). Kmart immediately sought and obtained permission from the Tenth Circuit to appeal that decision under F.R.C.P. 23(f). As a result of the settlement agreement presently before the Court, briefing before the Tenth Circuit was not completed.

In August 2005, the parties initiated settlement negotiations that have yielded the settlement agreement submitted to the Court. These settlement negotiations were ongoing from August 2005 to February 2006. As part of those negotiations, Kmart provided plaintiffs with additional documents relating to topics addressed during the negotiations and made arrangements for plaintiffs’ expert to survey two Kmart stores. In addition to extensive telephone and email conversations, the parties engaged in two multi-day, in-person negotiating sessions along with other shorter meetings.

The parties’ initial negotiations concerned injunctive relief. The parties reached agreement concerning a large part of the injunc-tive relief before turning to damages, and the negotiations concerning damages and injunc-tive relief were kept completely separate from one another. The parties did not discuss attorneys’ fees until there was substantial agreement on all parts of the injunctive and damages settlement. Both parties have been represented throughout these negotiations by counsel with extensive experience in disability rights and class action litigation.

Once the settlement was almost finalized, class counsel provided the draft settlement agreement to prominent members of the disability rights community across the country. The parties incorporated into the settlement agreement several suggestions that they received through this process.

III. Summary of the Settlement

In summary, under the proposed settlement agreement:

• Kmart will survey and, with few exceptions, bring all of its stores into compliance with the Department of Justice Standards for Accessible Design and all of its stores in California into compliance with Title 24 of the California Code of Regulations within approximately seven and a half years (Agreement If 6);
• Kmart will ensure that all merchandise on “fixed displays” — including gondolas, perimeter walls, and “I” walls — as well as large appliances, drive aisle displays and sidewalk displays will be on an accessible route of at least 36 inches (Agreement 1Í1Í12.6.1-.3, 12.6.8);
• Kmart will ensure that all accessible restrooms and fitting rooms will be on an accessible route and maintained free and [692]*692clear of obstructions (Agreement 111112.6.5-.6);
• Kmart will ensure that one accessible check-out lane is open at all times the store is open (Agreement H 12.5);
• Kmart will, in all but 10% of its stores, provide a path of at least 32 inches to at least one side of moveable apparel displays in 80% of floor space occupied by moveable displays as well as a distance of 32 inches between certain types of moveable apparel displays when they are placed next to one another (Agreement UH 12.1 — .2);

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234 F.R.D. 688, 18 Am. Disabilities Cas. (BNA) 834, 2006 U.S. Dist. LEXIS 42041, 2006 WL 722166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lucas-v-kmart-corp-cod-2006.