America West wasn't sued by the blind passenger, but fined by the DOT.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">America West Airlines has been fined USD$1,000 by the US Department of Transportation (DOT) for placing a blind passenger and her seeing-eye dog in coach after a first-class passenger objected to sitting next to the dog. DOT rules say that in such circumstances airlines should move the objecting passenger or remove that passenger from the aircraft. </font>
http://news.airwise.com/stories/99/09/938606087.html