The family-owned Peruvian restaurant, Lima, located in Concord, California, permanently closed its doors on New Year's Eve. The closure comes after the establishment faced significant financial strain due to a gender discrimination lawsuit filed against it the previous year.

Lima gained national attention for its weekly ladies' night promotion, a practice once commonplace in the industry. This promotion offered discounted drinks to women, a strategy aimed at boosting patronage. However, as Chef/owner John Marquez explained to various news outlets, including the New York Post, the lawsuit stemming from this promotion incurred tens of thousands of dollars in legal fees and ultimately led to the restaurant's demise.

Marquez expressed his frustration to media outlets like KRON-TV and ABC7 News, characterizing the lawsuit as "frivolous" and suggesting that the plaintiffs were likely not local patrons but rather opportunistic lawyers exploiting California's legal landscape. He lamented the impact on his business, stating that it hadn't fully recovered from the financial blow.

California law, specifically the Unruh Civil Rights Act, mandates that businesses provide "full and equal accommodations" to all patrons regardless of sex, race, religion, or other protected characteristics. This decades-old law has been the basis for several similar lawsuits against businesses in the state.

CNN, in its coverage of Lima's closure, highlighted the challenges faced by small businesses navigating these legal complexities. Rebecca Nieman, a professor of business law and ethics at the University of San Diego, noted that many small establishments may be unaware of the intricacies of the Unruh Act, making them vulnerable to such lawsuits.

The case of Lima is not isolated. The Fresno Grizzlies, a minor league baseball team, encountered a similar lawsuit and faced a $5 million claim after hosting a "ladies night" promotion with free admission for women. The attorney involved in that case, Alfred Rava, also pursued legal action against the Oakland Athletics for a Mother's Day promotional giveaway.