State Governments Move to Limit Year 2000 Liability

By David M. Nadler*

Like corporate America and the federal government, state governments are confronting the significant challenges and immutable deadline of the year 2000. And like their corporate and financial counterparts, so too are the states highly dependent upon computer systems to conduct business operations and provide essential services to their citizens

The implications to the states of computer malfunctions could be profound -- everything from pension plans to health services to tax collection are at risk. States are thus rightly concerned about the avalanche of litigation they could face if their computer systems are compromised by year 2000 problems.

As a result, some states are looking to their legislatures to limit their potential liability for damages caused by year 2000 problems. Several states are seeking to avoid year 2000 litigation through legislative grants of immunicty.