SETTLEMENT AGREEMENT UNDER THE AMERICANS WITH DISABILITIES ACT OF 1990 BETWEEN THE UNITED STATES OF AMERICA AND MLG INVESTMENTS, INC., d/b/a SUBWAY STORE #1497, CHANDLER, ARIZONA, XXXX I. Background 1. This matter was initiated by a complaint, dated August 1, 1994, filed with the United States Department of Justice ("the Department"), against Subway Store #1497 ("Subway"), in Chandler, Arizona. The complaint was investigated by the Department under the authority granted by section 308 (b) of the Americans with Disabilities Act of 1990 ("ADA"), 42 U.S.C.  12188. The complainant, stated that he has a hearing disability and uses a service animal. He alleges that he was in the Subway store on or about June 22, 1994, and was asked to leave because he had his service dog with him and did not display the dog's "certification" as a service animal. 2. Subway denies that it acted unlawfully with respect to the complainant. Subway alleges that it allowed to finish his meal before asking him to leave, after James Goers had contacted the Maricopa County Health Department and was advised that could not keep a "non-seeing eye" animal in the store, and after other customers complained about the animal's presence. 3. The parties have agreed to settle this matter without resolving the factual and legal dispute regarding the lawfulness of Subway's policies. 4. The parties to this Settlement Agreement ("Agreement") are the United States of America and MLG Investments, Inc., d/b/a Subway Store #1497. 5. This Agreement does not constitute an admission of liability and/or fault on the part of Subway. The parties enter into this settlement agreement in order to avoid litigation and hereby agree as follows: II. Title III Coverage 6. Subway is an establishment serving food or drink and is therefore a place of public accommodation as defined in section 301(7)(B) of the ADA, 42 U.S.C.  12181, and its implementing regulation, 28 C.F.R.  36.104. 7. The ADA requires that public accommodations make reasonable modifications in policies, practices, or procedures, to permit the use of a service animal by people with disabilities. 28 C.F.R.  36.302(c). Although some States have programs to certify service animals, public accommodations may not insist on proof of State certification before permitting the entry of a service animal to a place of public accommodation. U.S. Department of Justice, Title III Technical Assistance Manual,  III-4.2300. 8. The complainant, is an individual with a disability, as defined by section 3 (2)(A) of the Act and section 36.104 of the title III regulation. 42 U.S.C.  12102, 28 C.F.R.  36.104. III. Actions to be taken by Subway 9. Subway agrees to take the following actions within 45 days of the date of this Agreement: a. Subway shall develop and post in a prominent location of its public areas a written policy statement indicating that all persons with disabilities, including those accompanied by service animals, are welcome in the restaurant, and that no proof of an animal's certification as a service animal is required. However, Subway may inquire of any person bringing an animal into the store whether such animals are service animals required because of a disability, as contemplated by the ADA. b. Subway shall train all present and future staff to ensure that all people with disabilities, including those with service animals, are treated in a nondiscriminatory manner and are afforded the same service and courtesy as that afforded any customer of the restaurant. C. Subway shall pay to the sum of $500 by certified check. The check, which shall not be construed as an admission of liability or fault, shall be made payable to A copy of the check and the transmittal letter shall be sent to counsel for the government. Payment shall be tendered conditioned upon Subway's receipt of the release attached as Appendix A, signed by IV. Implementation 10. Under section 308(b)(1)(B) of the ADA, 42 U.S.C.  12188(b)(1)(B), the Attorney General is authorized to bring a civil action under title III 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 Agreement as set forth above, the Attorney General agrees to refrain from undertaking further investigation or from filing a civil suit under title III in this matter. 2 11. The Department may review compliance with this Agreement at any time. If the Department believes that this Agreement or provisions thereof have been violated, it may institute a civil action in the federal district court for Arizona, or any other appropriate federal district court, following written notice to Subway Store #1497, P.O. Box 85, Chandler, Arizona, 85244 of the possible violation and a period of twenty (20) days in which Subway has the opportunity to cure the first alleged violation. The Attorney General is authorized to seek civil penalties pursuant to 42 U.S.C.  12188(b)(2)(C). For any subsequent alleged violations of this Agreement, the Department may institute a civil action against Subway without any waiting period for Subway to cure the alleged violation. 12. This Agreement is a public document. A copy of this Agreement or any information contained herein may be made available to any person. Subway, through its owners, upon written request to Subway Store #1497, P.O. Box 85, Chandler, Arizona, 85244, or the Department shall provide a copy of this Agreement to any person upon request. 13. This Agreement shall become effective as of the date of the last signature below. The Agreement shall be binding on Subway and its successors in interest, or as provided in the Subway franchise agreement in effect as of the effective date of this Agreement. The owners and operators of Subway have a duty to so notify all such successors in interest. 14. This Agreement constitutes the entire agreement between the parties on the matters raised herein, and no other statement, promise, or agreement, either written or oral, made by either party or agents of either party, that is not contained in this written Agreement shall be enforceable. This Agreement is limited to the facts as set forth in paragraphs 1 through 3, and it does not purport to remedy any other potential violations of the ADA or any other federal, state or local law. This Agreement does not affect Subway's continuing responsibility to comply with all aspects of the ADA. 3 15. A signatory to this Agreement in a representative capacity for a partnership, corporation, or other such entity represents that he or she is authorized to bind such partnership, corporation, or other entity to this Agreement. For the United States: Deval L. Patrick Assistant Attorney General for Civil Rights By: (Signature) Date: 9/21/95 John L. Wodatch Joan A. Magagna Phyllis M. Cohen Attorneys Disability Rights Section Civil Rights Division U.S. Department of Justice P.O. Box 66738 Washington, D.C. 20035-6738 (202) 514-3882 For MLG Investments, Inc., d/b/a Subway Store #1497 By: (Signature) Date: 8/21/95 James D. Goers Owner/Manager Subway Store #1497 Alma School and Warner Road Chandler, Arizona (602) 899-0909 By: (Signature) Date: 8/21/95 Myron B. Goers Owner Subway Store #1497 10435 East Michigan Avenue Sun Lakes, Arizona 85248 (602) 899-0909 4