From USA TODAY: GTE, Xerox, Unisys sue for Y2K repairs

GTE, Xerox and Unisys are suing their insurance companies for the nearly $1 billion they've spent fixing the Year 2000 computer bug, handing the insurance industry a legal nightmare on the eve of Y2K.

Months away from the 21st century, companies are dusting off a legal theory known as the "sue and labor" clause dating to 17th-century shipping.

The clause is meant to encourage policyholders to minimize damage ahead of disasters. For example, if a ship breaks down in the path of a hurricane, the shipping company would have an obligation to have it towed out of harm's way, and the insurance company would pay the towing expenses.

The insurance industry has spent the last few years trying to bulletproof itself against liability lawsuits if things go awry when computers read year 2000 as 1900. But the sue-and-labor clause affects property insurance and slipped through the cracks of legal analysis...

Remember all those estimates of "a trillion dollars in legal costs"? They may have just gone up.

I note that the parties waited until late in the game (just three "months away from the 21st century") to spring this little surprise on the insurance companies. Very clever, that.

-- Mac (sneak@lurk.hid), October 01, 1999

Answers

Or is this there way of saying "we'll never make the deadline and we're taking you bastards down with us"....In GTE's case, I can believe it.

-- John Galt (jgaltfla@hotmail.com), October 01, 1999.

I hope they take every cent they can, bankrupt the vultures, and leave the corpses to rot in the sun. Seriously...talk about a bunch of money-grubbing bastards. Nothing like watching two groups of big business grind each other to scrap over litgation to do with Y2K. Let the leviathans duke it out. Maybe we can finally be rid of insurance companies forever!!! And yeah...its personal...I shill out over $2000 a year for car insurance...the first time I got in an accident, they made ME soak almost the whole thing...Shoulda kept the 2 grand....bastards

-- Billy-Boy (Rakkasn@Yahoo.com), October 01, 1999.

Yeah. Billy-Boy -- got to agree. In California, if you don't pay the $2000 (bribe) to the insurance companies, they get the state to take your car away. Come on Y2K 9 or 10!

-- A (A@AisA.com), October 01, 1999.

...they get the state to take your car away.Right now, I wish we had that in this state. Just two weeks ago, I was hit by a borderline alcohol impared driver...who has no insurance. My insurance covers out of pocket meds and collision with a $250 deductable. The shoe is sometimes on the other foot.

-- K. Stevens (kstevens@ It.s ALL going away in January.com), October 01, 1999.

De italics off!

-- DDDD (D@D.com), October 01, 1999.

Steven -- it's crybabies like you that empower the insurance companies. If YOU want to be insured against an accident happening to YOU, then YOU buy CASUALTY insurance to insure YOUR butt or property against damage. This is why there is casualty insurance -- the person who causes you damage may be "judgement proof" (no assets or assets out of reach). It is not up to me or the drunk to buy insurance for YOU. Which is not to say that you can't sue us if we cause you damage. But good luck collecting. So again, that is why it is YOUR responsibility to get YOUR OWN casualty insurance if you are so concerned.

-- A (A@AisA.com), October 01, 1999.

Mac,

Thatll throw a little warp into the Y2K weave!

And guess wholl ultimately pay for it... one way... or another.

;-(

Diane

-- Diane J. Squire (sacredspaces@yahoo.com), October 01, 1999.

The insurance industry has spent the last few years trying to bulletproof itself against liability lawsuits if things go awry when computers read year 2000 as 1900. But the sue-and-labor clause affects property insurance and slipped through the cracks of legal analysis...

Forget the insurance companies...what about lawyers? Maybe the insurance companies will sue their attornies for letting this slip through the cracks of legal analysis! They'd have to find attornies willing to represent them, then the lawyers could devour each other. Did you hear about the lawyer who took Viagra and grew taller?

-- RUOK (RUOK@yesiam.com), October 01, 1999.