Senate Testimony Confirms Litigation Risks

On October 22, the Senate Banking Committee under the leadership of Senator Robert Bennett held hearings on the litigation impact of the Year 2000 problem. Testimony from attorneys Jeff Jinnet of LeBouef Consulting and Greg Cirillo of Williams, Mullen, Christian & Dobbins outlined the expected litigation wave. Robert B. Austrian, Senior Software Analyst at Nationsbanc Montgomery Securities also provided useful insight. His testimony highlighted those industries that he identified as most vulnerable to litigation.

"We believe that nearly all sectors of the business community are vulnerable to the Year 2000 problem. Some are more vulnerable than others, including those with the most date-intensive applications. These include banking, investments, insurance, and manufacturing industries, the later more a result of their highly computer-dependent, "just-in-time" inventory practices than of a high incidence of dates per se.