SETTLEMENT AGREEMENT UNDER THE AMERICANS WITH DISABILITIES ACT BETWEEN THE UNITED STATES OF AMERICA AND LONE STAR STEAKHOUSE & SALOON, INC., DJ X 1. The parties to this agreement are the United States of America and Lone Star Steakhouse & Saloon, Inc. ("Lone Star"). The parties hereby agree as follows: BACKGROUND 2. This matter was initiated by a compliance review con- ducted by the U.S. Department of Justice ("the Department") concerning Lone Star's alleged noncompliance with the Americans with Disabilities Act ("ADA") Standards for Accessible Design ("the Standards") in its alterations to restaurant facilities and the design and construction of new restaurant facilities at various locations throughout the United States. The Department conducted the compliance review pursuant to authority granted by title III of the ADA, 42 U.S.C. 12188(b)(1)(A)(i). 3. Lone Star owns and operates 105 restaurants throughout the United States, operating in 29 states. It is headquartered in Wichita, Kansas. Since the effective date of title III of the ADA, Lone Star has constructed 23 new restaurants. It has also performed alterations in 74 existing restaurants. There are an additional 8 existing restaurants that were constructed prior to the effective date of title III and that have not been altered since that date. 4. The Department alleges that Lone Star has violated title III of the ADA and the title III regulation, 28 C.F.R. Part 36, by failing to perform the alterations and new construction described above in compliance with the ADA Standards for Accessi- ble Design, 28 C.F.R. Part 36, Appendix A ("the Standards"). The Department alleges Lone Star failed to comply with the ADA in several respects, such as the following: - lack of accessible routes from parking areas to building entrances; - inadequate clearances at entrances; - lack of accessible seating; 01-04787 - presence of protrusions such as pay phones and deco- rations; - inadequate ramps and handrails; - inaccessibility of restroom facilities; - non-complying audible and visual alarms and signs; and - inadequate parking facilities. 5. Lone Star denies that it has violated the ADA and nothing in this agreement shall be construed as an admission of liability by Lone Star. Lone Star maintains that it is fully committed to compliance with the ADA and that it has taken sub- stantial steps since the Department's compliance review was initiated, intended to ensure that its facilities are accessible. To demonstrate that commitment, Lone Star agrees to the steps set forth below. 6. In light of this agreement, the parties have determined that their respective interests can be met without engaging in protracted litigation to resolve this dispute. JURISDICTION 7. Title III of the ADA applies to Lone Star because it owns and operates a chain of restaurants that are places of public accommodation as defined in section 301(7) of the ADA, and section 36.104 of the regulation. 8. The subjects of this settlement agreement are: (a) the design and new construction of Lone Star sites in compliance with section 4.1.3 of the Standards and sections 36.401 and 36.406 of the ADA regulation since the effective dates of those provisions and (b) the alteration of sites subsequent to January 26, 1992 in compliance with section 4.1.6 of the Standards and sections 36.402 - 36.406 of the ADA regulation. ACTIONS TO BE TAKEN BY LONE STAR 9. Lone Star has already taken substantial steps intended to ensure accessibility in its facilities following the initia- tion of the Department's compliance review. In this effort, Lone 2 01-04788 Star retained the services of AccessAbility, Inc., of Salt Lake City, Utah, as architectural consultants with expertise in the requirements of the ADA. In addition to retaining the consul- tant, Lone Star reviewed all of its drawings and specifications, modified its prototype plans for new construction, conducted site visits, made extensive efforts to correct alleged deficiencies, and promptly communicated with the Department about its efforts. 10. Within 45 days of the effective date of this agreement, Lone Star shall complete the work necessary to bring all of its altered and newly constructed restaurants (as listed in corre- spondence with the Department, dated February 14, 1995) into full compliance with the ADA Standards for Accessible Design, includ- ing but not limited to correcting the problems set forth in para- graph 4 above. Within 60 days Lone Star shall provide the De- partment with a detailed report evidencing the completion of this work. 11. Lone Star further agrees that all future alterations and new construction of restaurant facilities shall comply fully with the ADA Standards. 12. Lone Star shall continue to employ the services of an ADA consultant for the duration of this agreement. In the event that Lone Star terminates its relationship with AccessAbility, Inc., it shall promptly hire a new consultant, and shall inform the Department in writing. 13. Lone Star shall continue to direct its ADA consultant to take all steps necessary to ensure compliance with the Stan- dards, including, where necessary, evaluation of plans and speci- fications and periodic site visits where appropriate. 14. Lone Star shall direct the consultant to inform Lone Star in writing of all deviations from the ADA Standards apparent from its review of architectural drawings and specifications and to make written recommendations as to how to bring the drawings and specifications into compliance. Lone Star shall also direct the consultant to advise Lone Star in writing of all deviations from the Standards identified through any site visit or review of plans and specifications and to make written recommendations to ensure that the Lone Star chain of restaurants is in compliance with the Standards. 15. In lieu of civil penalties, Lone Star shall, within 14 days of the effective date of this agreement, make a contribution 3 01-04789 of $25,000 (in amounts of $6,250 each), to the National Council on Independent Living (NCIL), Self Help for Hard of Hearing People (SHHH), the American Council of the Blind (ACB), and the Learning Disabilities Association (LDA), non-profit organizations selected by Lone Star that advocate on behalf of persons with disabilities and promote increased awareness of the ADA. IMPLEMENTATION OF THE SETTLEMENT AGREEMENT 16. The Attorney General is authorized, pursuant to section 308 (b)(1)(B) of the Act, to bring a civil action under title III, enforcing the ADA in any situation where a pattern or practice of discrimination is believed to exist or where a matter of general public importance is raised. In consideration of the terms of this agreement as set forth above, and the steps taken by Lone Star, the Attorney General agrees to refrain during the 90-day pendency of this agreement from undertaking further investigation of Lone Star's compliance with the new construction and alter- ations provisions of the Standards under title III, except as it relates to enforcement of this agreement. 17. Nothing in this agreement precludes the Attorney Gener- al from bringing a civil action under the ADA concerning: (a) alleged violations of the new construction and alteration provi- sions of the ADA occurring after the effective date of the ADA that are not brought into compliance within 45 days of the effec- tive date of this agreement and (b) other violations of the ADA, if any, not known to the Department as of the effective date of this agreement. The Attorney General agrees that other than the civil actions described above, the Department will not file or participate in any other civil suit, including one on behalf of a private litigant, concerning alleged violations of the alter- ationss and new construction Standards occurring prior to the termination of this agreement, provided Lone Star brings all of its facilities into compliance with the Standards within 45 days of the effective date of this agreement. 18. During the pendency of this agreement, the Department may institute a civil action in U.S. District Court enforcing this agreement, if the Department believes that this agreement or any requirement thereof has been violated. The filing of such an enforcement action shall toll the termination of this agreement. The Department may review compliance with this agreement at any time. If the Department believes that this agreement or any portion of it has been violated it will raise its concern(s) with Lone Star and the parties will attempt to resolve the concern(s) 4 01-04790 in good faith. Lone Star will be given 21 days to cure any breach of this agreement prior to the institution of any enforce- ment action. During the pendency of this agreement, Lone Star shall allow the Department and its representatives to conduct site visits at any of its facilities upon five day's notice. Such visits are to be conducted between the hours of 8:00 a.m. and 11:30 a.m., Monday through Friday. 19. This agreement shall be binding on all of the operators of Lone Star, its subsidiary corporations, and their successors in interest. 20. A signer of this document in a representative capacity for Lone Star represents that he or she is authorized to bind the corporation to this agreement. 21. Failure by the Department to enforce this entire agree- ment or any provision thereof with regard to any provision herein shall not be construed as a waiver of its right to do so with regard to other provisions of this agreement. 22. This agreement is a public document and constitutes the entire agreement between the parties on the matters raised here- in, and no other statement, promise, or agreement either written or oral, made by either party or agents of either party, that is not contained or referenced in this written agreement, shall be enforceable. This agreement is limited to the facts set forth in paragraphs 1 through 3, the allegations set forth in paragraph 4, and the subject matter set forth in paragraph 8. 23. This agreement does not affect Lone Star's continuing responsibility to comply with all aspects of the ADA. EFFECTIVE DATE/TERMINATION DATE 24. The effective date of this agreement is the date of the last signature below. This agreement shall terminate, and the compliance review referenced in paragraph 2 shall be administra- tivelys closed, 90 days from the effective date of this agreement. 5 01-04791 For Lone Star Steakhouse & Saloon, Inc.: (Signature) (Handwritten) 2/28/95 _______________________________ ____________________ Gerald T. Aaron Date Senior Vice President-Counsel Represented by: (Signature) (Handwritten) 2/28/95 _______________________________ ______________________ Robert S. Bennett, Esq. Date Michael M. Connery, Esq. John P. Furfaro, Esq. Laura A. Ingraham, Esq. Skadden, Arps, Slate, Meagher & Flom 1440 New York Avenue, N.W. Washington, D.C. 20005-2107 For the United States: (Signature) Marc Dubin (Handwritten) 2/28/95 ______________________________ _______________________ Deval L. Patrick Date Assistant Attorney General John L. Wodatch Irene Bowen Marc Dubin Public Access Section Civil Rights Division U.S. Department of Justice P.O. Box 66738 Washington, D.C. 20035-6738 (202) 307-0663 6 01-04792 AP v5029 rw 3exec Handicapped Access,420 03-01 8:48a Restaurant Chain Agrees to Comply With Disabled-Rights Law By CASSANDRA BURRELL Associated Press Writer WASHINGTON (AP) - The Lone Star Steakhouse & Saloon chain avoided thousands of dollars in civil penalties by agreeing to remodel 97 of its restaurants to make them more accessible to the disabled, the Justice Department says. Lone Star executives signed a settlement agreement Tuesday with the department, which enforces the Americans With Disabilities Act. The act prohibits discrimination against disabled people in public accommodations. Had the company not settled, it could have been fined $50,000 for the first violation of the law and up to $100,000 for each subsequent violation. "We are pleased that we have been able to resolve this matter without the necessity for costly and time-consuming litigation," Wichita, Kan.-based Lone Star said in a written statement. It could not be learned how much the remodeling will cost. "This agreement demonstrates the need for architects and builders to comply with the (act) at the earliest stages," said Deval L. Patrick, assistant attorney general for civil rights. "It's better to build it right the first time, than to have to go back and fix it later." The agreement is the first settlement reached involving a Justice Department review of building blueprints. It's also the first agreement involving buildings that were built since January 1992, when the handicapped access law went into effect, department attorney Irene Bowen said. "When we did this review, we discovered that there were numerous violations in their plans, so we then visited several restaurants and expanded this to an investigation of the entire chain and found problems with both alterations and new construction," she said. Investigators found that many restaurants lacked sufficient parking for the handicapped, had bathrooms that were inaccessible and had inadequate ramps. Bowen said Lone Star agreed to correct problems in the 23 restaurants built and the 74 altered since 1992. The company runs 105 restaurants in 29 Midwestern, Southern and Mid-Atlantic states. Most of the violations already have been corrected, and the company has agreed to complete the rest within 45 days, Bowen said. Lone Star officials has promised to comply with the law in all future constructions and alterations, Bowen said. And they've agreed to donate $25,000 to four nonprofit groups - the National Council on Independent Living, Self Help for Hard of Hearing People, the American Council of the Blind and the Learning Disabilities Association. (civil&rights) 01-04793 THE WALL STREET JOURNAL Lone Star Steakhouse Settles With the U.S. Over Disabilities Act By a Wall Street Journal Staff Reporter WASHINGTON - The Justice Depart- ment reached a settlement with Lone Star Steakhouse & Saloon Inc. the re- quires the chain to bring almost 100 of its restaurants into compliance with the Americans with Disabilities Act. The agency said this is the first ADA settlement involving buildings that were constructed after the federal law went into effect. Lone Star, based in Wichita, Kan., has built or altered 97 restaurants since Jan. 26, 1992, when the ADA went into effect. The restaurant chain has a total of 105 restaurants. Neither company officials nor a lawyer for Lone Star returned phone calls seeking comment on the settlement. In a news release, Lone Star said it was pleased that it was able to resolve the matter without "costly and time-consuming litigation." Through a review of architectural blue- prints and site visits, the Justice Depart- ment cited Lone Star for, among other things, insufficient parking and inaccessi- ble bathrooms. The settlement calls for Lone Star to make all of its restaurants fully accessible, within 45 days. Lone Star also is required to donate $25,000 to four non-profit disabil- ity groups. 62 01-04794 Lone Star to correct ADA violations By Jay Margolis Staff writer Lone Star Steakhouse & Saloon, 5525 Coldwater Road, was one of the chain's 97 U.S. restaurants found in violation of the Ameri- cans with Disabilities Act by the U.S. Department of Justice, depart- ment officials announced Tuesday. Lone Star has agreed to correct the violations at all of its restau- rants within 45 days and donate $25,000 to four non-profit disabili- ty groups it chooses. The Justice Department said Lone Star cooperated with its offi- cials, beginning corrections before signing the agreement. This is the first agreement to re- sult from a compliance review. An investigation begun by the de- partment because of the company's expansion - and the first settle- ment of new construction said Irene Bowen, deputy chief of the public access section of the depart- ment's civil rights division. Beginning last fall, the Justice Department reviewed the proto- type construction plans, then con- ducted some spot checks. It determined there was: * Insufficient parking for peo- ple with disabilities, and the park- ing spaces weren't large enough. * Access problems with the al- cove at the entrance. * Not enough seating for people with disabilities. * Inaccessible bathrooms for people with disabilities. The corrections will cost Lone Star hundreds of thousands of dol- lars, Bowwn said. The Justice Department has 1,000 cases involving "all kinds of private entities" under investiga- tion, she said. "There are very few buildings that are in compliance with ADA," Bowen said. "It needs to become a way of business so the need to cor- rect problems doesn't arise." The law states that failure to de- sign and construct facilities readily accessible to and usable by people with disabilities is discrimination. It includes specific design guide lines that must be followed by new construction or alterations begun since Jan. 26, 1992, when the law took effect. Information on the law is avail- able through a toll-free telephone line at (800) 514-0301; those using Telecommunications Devices for the Deaf can call (800) 514-0383. Lone Star has 105 restaurants in 29 states, building 23 and remodel- ing 74 others since Jan. 26, 1992, Bowen said. Each of the 97 restaurants, in- cluding eight in Indiana and 13 in Ohio, were found to have viola- tions. It could not be determined Tuesday night what violations were found at the Fort Wayne restaurant or whether they already had been corrected. 01-04795 3/1/95 Lone Star Settles dispute over access for disabled. The Evansville Courier By The Associated Press WASHINGTON - The rapidly growing Lone Star Steak- house & Saloon chain has agreed to remodel 97 of its restaurants to make them more accessible to the disabled and comply with federal law. Loan Star executives signed the settlement agreement Tues- day, avoiding civil penalties that could have amounted to $50,000 for the first violation and up to $100,000 for each subsequent one, the Justice Department said. The agreement is the first settlement reached involving a Justice Department review of building blueprints, said Irene Bowen, head of the department office that enforces the Ameri- cans With Disabilities Act. It is also the first agreement involving buildings that were built since January 1992, when the law went into effect, Ms. Bowen said. In its investigation, the Justice Department found many restaurants lacked sufficient parking for the handicapped, had bathrooms that were inaccessible and had inadequate ramps. The Wichita, Kan.-based Lone Star said in a statement, "We are pleased that we have been able to resolve this matter without the necessity for costly and time-consuming litigation." 01-04796 Department of Justice FOR IMMEDIATE RELEASE CR TUESDAY, FEBRUARY 28, 1995 (202) 616-2765 TDD (202) 514-1888 NATIONWIDE RESTAURANT CHAIN TO IMPROVE ACCESSIBILITY UNDER JUSTICE DEPARTMENT SETTLEMENT WASHINGTON, D.C. -- Nearly 100 Lone Star Steakhouse and Saloon restaurants that were not built or remodelled within specific guidelines are being made more accessible to persons with disabilities, under a formal agreement reached today with the Justice Department. The agreement stems from a requirement under the Americans with Disabilities Act (ADA) that the Justice Department review newly constructed and altered facilities to ensure that they are in compliance with the law. As part of the review of Lone Star, the Justice Department examined blueprints of the restaurants. In site visits, following the review of the architectural plans, the Justice Department determined that the chain lacked sufficient accessible parking, failed to offer sufficient accessible seating, built inaccessible bathrooms, and installed inadequate ramps. Title III of the ADA prohibits discrimination against persons with disabilities by public accommodations such as (MORE) 01-04797 -2- restaurants. The law provides that failure to design and construct facilities that are readily accessible to and usable by persons with disabilities constitutes discrimination. It requires that all new construction and alterations commenced after the law went into effect comply with specific guidelines known as the ADA Standards for Accessible Design. Lone Star, which has 105 restaurants in 29 states, constructed 23 restaurants and remodeled 74 others since January 26, 1992, when the law went into effect. "This agreement demonstrates the need for architects and builders to comply with the ADA at the earliest stages," said Assistant Attorney General for Civil Rights Deval L. Patrick. "We are pleased that Lone Star is taking the steps necessary to improve access for its customers with disabilities and to ensure that future restaurants are built properly." Under the agreement, Lone Star will: * make all of its restaurants fully accessible within 45 days, and comply with the Standards in the future. * donate $25,000 to four non-profit disability groups selected by Lone Star, including, the National Council on Independent Living, Self Help for Hard of Hearing People, the American Council of the Blind, and the Learning Disabilities Association, * allow site visits by the Justice Department and provide a detailed report outlining its compliance efforts. The restaurant chain cooperated with the Justice Department review and began to correct the problems prior to signing the agreement. (MORE) 01-04798 -3- "It's better to build it right the first time, than to have to go back and fix it later," added Patrick. "We encourage business owners to urge their architects to carefully review building plans to ensure they are in compliance with the ADA." Last year Attorney General Janet Reno launched a national campaign to educate Americans about their rights and obligations under the ADA. She is committed to reaching out to businesses to urge voluntary compliance with the law. The campaign, which includes television and radio public service announcements, advertises a toll-free ADA information line. The number is 800- 514-0301 or 800-514-0383 (TDD). The Lone Star chain has restaurants in the following states: Alabama (2), Arkansas (2), Colorado (4), Delaware (3), Florida (8), Georgia (1), Illinois (8), Indiana (8), Iowa (4), Kentucky (4), Louisiana (1), Maryland (1), Michigan (4), Mississippi (1), Missouri (5), Nebraska (2), Nevada (3), New Jersey (1), North Carolina (4), North Dakota (1), Ohio (13), Oklahoma (1), Pennsylvania (5), South Dakota (1), Tennessee (3), Utah (1), Virginia (10), West Virginia (1), and Wisconsin (2). ### 95-112 01-04799