STORY:
Senate Debates Y2K Lawsuits Limits

According to a Reuters report, the U.S. Senate is debating legislation to protect companies and their top executives from lawsuits over the year 2000 computer problem.

The report says most Republicans support the bill which would prevent the filing of year 2000 computer bug lawsuits during a 90-day cooling-off period, cap punitive damages and limit the liability of company executives in millennium bug cases.

Backed by politically powerful computer makers and software companies, banks, and manufacturers, backers of the bill argued that the bill was needed to avert a flood of year 2000 computer lawsuits. According to some experts, litigation costs alone could add up to $1 trillion.

But most Senate Democrats, under pressure from trial lawyers and consumer advocates, said they were opposed to the bill because it would curb the rights of computer users to sue companies if their systems crash next Jan. 1. Specifically, Democrats oppose provisions capping punitive damages at $250,000 for many businesses and limiting the liability of top executives to $100,000.

Fearing a flood of frivolous lawsuits, business groups representing IBM, Microsoft, AT&T Corp and other high-tech companies asked Congress to set limits.

Source: Reuters

DATE: 4/28/99

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