By David M. Nadler and Geoffrey Bestor*
On July 20, 1999, President Clinton signed the Y2K Act. Although the Act does not provide immunity for Y2K failures, it creates significant disincentives to litigation in certain instances. As such, the Act represents the first federal effort designed to mitigate the impact of potential Y2K litigation on businesses and individuals. The key provisions of the Act are as follows:
- 30-Day Notice Period
– requires a plaintiff to submit a 30-day notice to a defendant regarding the plaintiff’s intention to sue and a description of the alleged Y2K problem. If the defendant responds with a plan to remediate or engage in alternative dispute resolution ("ADR"), then an additional 60 days is allowed to resolve the problem. If the defendant does not agree to fix the problem, the plaintiff can sue on the 31st day.
- Cap On Punitive Damages
