State And Federal Y2k Liability Legislation Is A Welcome Signal, Says Civil Justice Association of California

SACRAMENTO - Five new Year 2000 liability bills with bi-partisan authorship are a welcome signal that the California Legislature wants to prevent plaintiff lawyer exploitation of any problems that might occur when computer systems around the state say goodbye to 1999 this December 31, according to the Civil Justice Association of California (CJAC). The association also said it was significant that California Senator Dianne Feinstein has joined with Senator Orrin Hatch of Utah to introduce "The Year 2000 Fairness and Responsibility Act" which has already received its first hearing in the Senate Judiciary Committee. While no vote was taken, the testimony presented clearly outlined the need for the legislation.

"We are pleased to see that policy is being proposed on a state and national level that will prevent a trial lawyer bonanza if and when year 2000 computer failures occur," said John H. Sullivan, Civil Justice Association of California president. "This is a time when we should all work together to ensure a successful Y2K transition - not a time for a new round of shake down lawsuits."

The state Y2K bills (URL links listed below) include an Civil Justice Association of California-sponsored measure - AB 905 (Dutra) - which would provide legal protections to those who make reasonable efforts to make their computer systems Year 2000-compliant. Other bills would place Y2K disputes into mediation and arbitration and require suits where personal injuries are not involved to be handled under contract law - rather than in costly contingency fee suits that often produce more benefits for the lawyers than for their clients.

"Senator Feinstein's bill, S461, is especially noteworthy in its attempt to discourage predatory lawsuits by limiting punitive damages and lawyer-driven class action lawsuits while making sure that people can sue for their real economic losses," Sullivan said. "This is a win-win bill for consumers."

Civil Justice Association of California also noted that California Congressmen Dreier, Cox and Dooley are among the sponsors of House Resolution 775 which contains provisions similar to those in the Feinstein-Hatch bill.

Last year Civil Justice Association of California sponsored a bill (AB 1710 - Firestone) to prevent fee-generating lawsuits against companies that make a good faith effort to become Y2K compliant and inform clients of potential Y2K problems. Although the bill was blocked by plaintiffs' lawyers in its first committee, it became a model for Y2K liability legislation throughout the country.