Press Release of Senators Dodd, McCain, Wyden, Hatch, Feinstein, and Bennett.
Y2K litigation bill agreement.
Date: April 28, 1999.
Source: Senate Commerce Committee. This document was created by scanning a fax copy and converting into HTML.

United States Senate
WASHINGTON, 20610

Y2K DEAL REACHED BETWEEN DODD, McCAIN,
WYDEN, HATCH, FEINSTEIN, AND BENNETT

WASHINGTON, D.C. -- Senators Chris Dodd (D-CT), John McCain (R-AZ), Ron Wyden (D-OR), Orrin Hatch (R-UT), Dianne Feinstein (D-CA), and Robert Bennett (R-UT) reached an agreement this afternoon on Y2K litigation legislation. Procedural hurdles, however, remain. A cloture vote is scheduled for Thursday. The revisions, contained in a Dodd amendment, include the following:

• retains punitive damage caps for small businesses
• eliminates punitive damage caps for large businesses (over 50 employees)
• exempts municipalities and governmental entities from punitive damages
• eliminates personal liability caps for officers and directors of businesses and corporations
• preserves state evidentiary standards for claims such as fraud

The bill would still do the following:

• Require a 30 Day Notice: Requires a plaintiff to submit a 30-day notice to the defendant on the plaintiff's intention to sue with a description of the Y2K problem. If the defendant responds with a plan to remediate, then an additional 60 days is allowed to resolve the problem. If the defendant does not agree to fix the problem, the plaintiff can sue on the 31st day.
• Establish Liability Proportionality: Ensures that defendants don't pay more than the damage they are responsible for. Exceptions include plaintiffs with a modest net worth that aren't able to collect from one or more defendants; and defendants that have intentionally injured plaintiffs.
• Preserve Contract Rights: Does not interfere with parties who have already agreed on Y2K terms and conditions.
• Confirm the Duty to Mitigate: Confirms existing law that plaintiffs have to limit damages, and can't collect damages that could have been avoided. This is an opportunity for potential defendants to provide widespread information on Y2K solutions to assist potential plaintiffs.
• Encourage Alternative Dispute Resolution.
• Personal Injury and Wrongful Death Claims Not Covered Under Bill.