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.
In December, 1996, International Data Corporation surveyed 500 executives of medium and large companies spanning six industries including banking, insurance, investing, manufacturing, utilities and communications. Executives in the banking, insurance and investing industries stated, most frequently that the possibility of legal liabilities exited in their industries; 55%, 43% and 37%, respectively, responded "yes" to "possibility of legal liabilities arising from Y2K problems?". In the survey, the following sources of legal challenge were named by the percentages of executives shown (more than one answer allowed):
Although some industries seem more likely to experience legal liability than others, we strongly believe that all industries are affected by the problem and subject to litigation risk. . . ."
Hancock Rothert & Bunshoft has formed a Year 2000 Team to assist companies with related legal problems. If you would like more information on Hancock's Year 2000 Team, or on the firm in general, please contact: Vito C. Peraino on Tel: 213-623-7777 or E-mail: Click Contact Link or visit the Hancock Rothert & Bunshoft website at Click Contact Link
Visit the Year 2000 website at Click Contact Link
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
"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.
In December, 1996, International Data Corporation surveyed 500 executives of medium and large companies spanning six industries including banking, insurance, investing, manufacturing, utilities and communications. Executives in the banking, insurance and investing industries stated, most frequently that the possibility of legal liabilities exited in their industries; 55%, 43% and 37%, respectively, responded "yes" to "possibility of legal liabilities arising from Y2K problems?". In the survey, the following sources of legal challenge were named by the percentages of executives shown (more than one answer allowed):
Customers 62% Regulators 32% Stockholders/Policyholders 21% Suppliers 3% Other/Don't Know 18%
Although some industries seem more likely to experience legal liability than others, we strongly believe that all industries are affected by the problem and subject to litigation risk. . . ."
Hancock Rothert & Bunshoft has formed a Year 2000 Team to assist companies with related legal problems. If you would like more information on Hancock's Year 2000 Team, or on the firm in general, please contact: Vito C. Peraino on Tel: 213-623-7777 or E-mail: Click Contact Link or visit the Hancock Rothert & Bunshoft website at Click Contact Link
Visit the Year 2000 website at Click Contact Link
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
