Senate moves forward on Y2K litigation bill

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Senate moves forward on Y2K litigation bill

------------------------------------------------------------------------

WASHINGTON (AP) - The Senate rejected a Y2K litigation measure Wednesday that had the blessing of the White House. It also moved closer to passing a bill threatened by a presidential veto.

Both sides in the debate said the objective was to blunt what many in the business community fear could be a flood of lawsuits rising from disruptions caused by the year 2000 computer glitch.

After daylong debate, the Senate defeated, 57-41, a substitute bill proposed by Sen. John Kerry that the Massachusetts Democrat said would have better protected consumer interests, while winning President Clinton's signature.

That vote put the base bill, sponsored by Sen. John McCain, R-Ariz., on a path toward passage, possibly as early as Thursday.

The two measures were similar in establishing a 90-day waiting period to allow companies to fix computer problems and encourage dispute resolution. They also put limits on class action lawsuits.

But while the McCain bill sets punitive damage caps for plaintiffs with 50 or fewer employees, Kerry's measure would have eliminated all such caps and exempted individual consumers from the limits in the bill. The two measures also differed on language; McCain wanted to make most defendants liable only in proportion to the damage they cause.

The administration has said that the McCain bill would warrant a veto because it takes away too many consumer legal rights to seek damages.

McCain, who has agreed to considerable changes in his legislation since it cleared his Commerce Committee early this year, said he would not abide further compromises: ``This bill must not be further emasculated.''

Bruce Josten, executive vice president of the U.S. Chamber of Commerce, a leading advocate of lawsuit legislation, said the vote against Kerry proved that ``senators realize that the thoughtful compromise'' McCain had worked out was ``the substantive bill.''

But Sen. Charles Robb, D-Va., urged support for Kerry's measure because ``we need a bill that the president will sign. Otherwise we are just playing politics.''

The McCain measure had the backing of numerous Democrats, including Sens. Ron Wyden of Oregon and Christopher Dodd of Connecticut, who helped insert language limiting punitive damage caps to small businesses and ensuring that company directors are liable for actions they take that might cause harm to others.

The only Democrat to speak out against the need for lawsuit controls was Sen. Ernest Hollings of South Carolina. Hollings said trial lawyers and punitive damage awards are essential to consumer interests in America and linked enthusiasm for a litigation bill to the political contributions of the high tech industry.

``Silicon Valley has got the money and people are falling over pell-mell,'' he said.

The Senate approved by voice an amendment by Sen. Wayne Allard, R-Colo., to prevent the legislation from preempting state laws that take stronger steps to block Y2K litigation.

The Senate bill would have to be reconciled with a House version that passed last month and drew greater criticism from the administration for sacrificing consumer interests.

The bill is S. 96.

================================================

Ray

-- Ray (ray@totacc.com), June 09, 1999

Answers

Kerry & Wyden were debating the Kerry amendment, and at one point Wyden, in making a point says, ...we KNOW there are going to be disruptions early next year, the senate committee showed that... Q. Where are the reporters? Where is the public? A. Asleep. Brain dead. It is ludicrious that a U.S. senator can say this in an open forum and no significant attention is given it.

-- curtis schalek (schale1@ibm.net), June 09, 1999.

gggggrrrrrrrrr!

-- R. Wright (blaklodg@hotmail.com), June 10, 1999.

Moderation questions? read the FAQ