STORY:
Y2K Bug Lawsuit Bill Clears Senate Panel

U.S. Senate panel has voted to limit lawsuits against high-tech companies stemming from the year 2000 computer bug.

The Senate Judiciary Committee, voting 10-7, approved legislation supported by major computer and software companies to delay so-called millennium bug lawsuits during a 90-day "cooling-off" period, cap punitive damages and limit the liability of company executives.

According to the Nando Times,the bill's Republican sponsor, Judiciary Committee Chairman Orrin Hatch of Utah, said the legislation was a work in progress, and that he would address Democratic objections before the bill moved to the Senate floor.

The Hatch bill would cap punitive damages at $250,000 for many businesses and limit the personal liability of corporate officers and directors to $100,000 in many cases. It would also delay some lawsuits during a 90-day waiting period, and make it harder for some plaintiffs to recover damages.

Both Republicans and Democrats are under pressure to act fast because of the deadline.

According to the Nando Times, the Justice Department warned that the bill was ripe for abuse, and might undermine Y2K readiness by taking pressure off the very companies charged with fixing the problem. Consumer advocacy groups said small businesses and computer users should have every right to sue.

The Judiciary Committee's ranking Democrat, Sen. Patrick Leahy of Vermont, criticized Hatch's proposal as a "wish list for special interests," who may or may not face Y2K lawsuits.

The full Senate was not expected to vote on Hatch's bill, or on a similar measure by Senate Commerce Committee Chairman John McCain of Arizona, until mid-April or May.

Source: Nando Times

DATE: 3/26/99

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