"Good Samaritan" Bill Will Reduce the risks of Sharing Year 2000 Information

By David M. Nadler and Edward W. Kirsch

On July 27, 1998, the President Clinton submitted to Congress the "Good Samaritan" legislative proposal that he promised during his first Year 2000 policy speech on July 14, 1998, at the National Academy of Sciences. The proposal, officially known as the "Year 2000 Information Disclosure Act", will promote the exchange of Year 2000 information between companies, their customers, and vendors by significantly reducing the risk of lawsuits arising from disclosure of Year 2000 information. The legislation provides a "safe harbor" for information disclosures, however, it will not reduce the liability that may arise from actual Year 2000-related failures of software, hardware and systems. The legislation also will not alter existing contracts and warranties, nor will it reduce liability for violation of disclosure requirements imposed by state and federal securities laws.