Sen. Hollings Opposes Year 2000 Litigation Reform Bill

(February 15, 1999) The supporters of S 96, the Y2K Act, argue that the rules for Year 2000 problem lawsuits must be reformed, so that companies will focus on fixing problems, rather than preparing for litigation. To achieve this goal, a bill must be passed quickly. Sen. Ernest Hollings' opposition may stand in the way.

Sen. John McCain (R-AZ) introduced the S 96, "The Y2K Act," last month to start the process of revising the rules for suits over Year 2000 technology problems. Sen. McCain is also Chairman of the Senate Commerce Committee, which held a hearing on the bill on February 9.

Sen. Ernest Hollings (D-SC), who was Chairman of the Committee until the Republicans won a majority in the Senate in the 1994 elections, stated at the hearing that he would try to kill the bill.

Sen. Ernest Hollings' opposition could prevent timely passage of any bill with meaningful reform. Not only do Senate rules and customs make it easy for determined Senators to delay bills, but Sen. Hollings is one of the most senior and crafty members of the Senate. Moreover, while Sen. Hollings has held elective office almost continuously since 1949, he is also a former trial lawyer. He remains one of the staunchest advocates of the plaintiffs' trial lawyers in the Senate.

"S 96 is a template -- a skeleton of a bill," that will undergo revisions, Marc Pearl, General Counsel of the Information Technology Association of America, told Tech Law Journal. "Unless Hollings is convinced that this bill is a benefit to the Plaintiff's community," said Pearl, "he is not going to support it."

Sen. Ernest Hollings

"Hollings has got to be neutralized," added Pearl. "He has got to be convinced that it is in the best interest of his constituents." See also, ITAA Year 2000 page.

Sen. Hollings ribbed Sen. McCain, and Sen. Chris Dodd (D-CT), who was present to testify in favor of the bill, for not supporting his positions on commercial issues of importance to his state, particularly regarding the tobacco industry, and right to work laws. He also repeatedly took issue with the characterization of Y2K lawyers as wealthy ambulance chasers. He mocked both the lawyers who won huge attorneys fees in a recent tobacco settlement, and the gathering of lawyers and lobbyists in the hearing room. He turned to McCain and said, "They are only here to fix you and me."

Sen. Hollings' gave his take on Year 2000 litigation reform:

"So, the vendors want to clean the shelf. It's a business proposition. Sell the old outdated, unmodified, archaic, and then start coming around and giving wonderful contracts to repair it, to take care of it. This is a business gimmick. It is absolutely against small business, and absolutely against the consumer. We are going to do everything we can to kill it. These people up in Washington have got to sober up. They think they have got -- because they have got the Chamber of Commerce ... and everything else like that, that they have got a big political move going."

"This is totally off base, this particular bill here," concluded Sen. Hollings. "This is a big business grab."

Hollings also delighted in mocking Tom Donohue of the U.S. Chamber of Commerce, who was present to testify in favor of Y2K litigation reform. The Chamber endorsed Hollings' opponent in the election last November. Last week the Chamber offered Hollings an award for his Congressional service on behalf of business.

"Can you imagine that unmitigated gall," Sen. Hollings intoned in his deep South Carolina drawl. "Come and try to give me an award, after they had endorsed my opposition."

Sen. McCain suggested: "Maybe it was an oversight."