Restaurants Targeted with New Lawsuit for Charging Substitution Fee

Restaurants Targeted with New Lawsuit for Charging Substitution Fee

As a restaurant owner, you strive to always cater to your guests’ different eating habits and dietary needs. It is hard to imagine being penalized for attempting to provide to the needs of your customers.

Specialty items, such as gluten-free substitutions, can increase a business’ food cost, and although charging an additional fee for these items is not unusual, please be aware that this can expose you to a lawsuit! This is a new, disturbing trend some legal offices in the California area have begun by targeting restaurants!

One of our clients, a restaurant owner with multiple units, notified us of a lawsuit he is currently facing. He is being sued for offering gluten-free alternatives on his restaurant’s menu at an increased price. This lawsuit is truly shocking, as the claimant is claiming this price increase is a violation of the Unruh Civil Rights Act, as discrimination against consumers with Celiac disease (gluten intolerance).

General Liability policy will not cover this peril! In fact, we are not certain if any other policy, including EPLI, will cover this at this time.

In our continuous commitment against new claim trends, we will keep you posted on the progress and resolution of this lawsuit.