Y2K Lawsuit Protections Clear Congress; Clinton OK Expected

Exactly six months before the year 2000, Congress emphatically endorsed compromise legislation Thursday to shield businesses from a potential flood of Y2K computer-related lawsuits. The White House says President Clinton will sign it.

A House vote of 404 to 24 was followed several hours later by an 81-18 vote in the Senate.

“The year 2000 is right around the corner,” said Rep. David Dreier (R-San Dimas), one of the chief House sponsors. “We have a responsibility to do what we can to help people solve Y2K problems before anything goes wrong.”

One of the legislative priorities of the business community this year, the bill gives them 90 days to fix Y2K problems before lawsuits can be filed. It also encourages mediation.

It also seeks to limit frivolous lawsuits by capping punitive damages for small businesses, narrowing the sphere of class-action lawsuits and ensuring that, in most cases, defendants will be held liable only for the share of the damage they cause.

“It will serve to minimize the potential explosion in litigation that would discourage Y2K compliance efforts, hurt American consumers and weaken our economic growth,” said Thomas J. Donohue, president and CEO of the U.S. Chamber of Commerce.

The Senate included language that takes the bill off the books after three years.