A family-owned restaurant in the San Francisco Bay Area is closing its doors permanently after a lawsuit settlement drained the company of financial resources that would allow it to continue operations.

John Marquez, the chef and owner of Lima Restaurant, a mom-and-pop establishment in Concord, shared with reporters that the settlement drained the restaurant's funds, making continued operations impossible.

The reason for the lawsuit? Plaintiffs in the complaint say that the restaurant's promotional “Ladies Night” was discriminatory. The lawsuit cited violations of anti-discrimination laws such as the Unruh Civil Rights Act, a 1959 California law commanding that individuals cannot be discriminated against in public accommodations, business, and housing.

Unruh is one of the most explicit and detailed anti-discrimination laws in the country, and it has been successfully applied in cases like Marquez’s where the violation was not done with bad intent.

Under the restaurant's promotional “Ladies Night,” women were afforded discounted drinks whereas men had to pay full price. While not a new practice in the restaurant industry, it is one that is slowly dying because of the continued legal action business owners have faced under Unruh and civil rights laws like it.

“Ladies Night” has always been a popular marketing and sales tactic used by restaurant owners, because it allows women to enjoy the benefits of discounted drinks while encouraging them to come out and enjoy the restaurant scene, which has the intended effect of bringing more men out as well.

Despite Marquez not having any ill intent when promoting his establishment’s “Ladies Night” discount, the California antidiscrimination law makes it extremely difficult for defendants like Marquez to win their case in trial. As a result, many small business owners who have faced similar legal action have chosen to settle their cases outside of court.

While the accusations made in these types of anti-discriminatory cases are legally sound, there's been growing scrutiny about the intent behind these lawsuits. Many people, including supporters of Lima Restaurant, call these complaints frivolous, opportunistic and even exploitative.

In early 2024, A similar lawsuit was brought against the Fresno Grizzlies, a minor-league baseball team, after the team held a promotional event that allowed women to enter the baseball stadium for free while men had to pay.

While many of these gender discrimination lawsuits have been limited to California, the Golden State is not the only one to have such laws on the books. According to policy think tank Movement Advancement Project, at least 22 states and the District of Columbia have detailed laws on the books about gender discrimination as they relate to business establishments.