Congress Weighs Y2K Protection
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Trucking companies may be vulnerable to Y2K litigation because they rely so heavily on computer interconnection with their customers. If a carrier doesn’t make sure all its shippers and business partners are Y2K-compliant, there’s a possibility it could be held liable if a failure results in interrupted service (2-22, p. 8).
A bill sponsored by Sen. John McCain (R-Ariz.) and Sen. Ron Wyden (D-Ore.), grows out of concern that business disruptions related to Y2K computer glitches will result in the worst flood of legal claims in American history.
A separate measure is moving through the House.
At the core of the senators’ bill is a provision that would allow for a “good faith” defense by companies trying to remedy their Y2K problems. It would give them a 90-day period to make repairs before lawsuits could be filed. It would also cap most punitive damage awards and make it harder to file class action lawsuits.
However, the legislation is receiving stiff opposition from some lawmakers and from the Clinton administration, which issued a statement last week that said the bill would “decrease the incentives organizations have to be ready and assist customers” in assuring their computers are Y2K compliant. The administration also said that without any changes, the attorney general would recommend a presidential veto.
The veto warning further endangered a bill that has been rewritten many times. Proponents say it will take federal action to stop an overflow of Y2K lawsuits, while its critics contend it undermines basic legal rights.
With Associated Press Reports
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