Bill would limit state,
By Richard Borreca
county Y2K liability
Star-BulletinIf a Year 2000 computer glitch throws Hawaii into a crisis, who are you going to sue? Probably not the state or county, according to a new piece of legislation awaiting Gov. Ben Cayetano's signature.
The proposal from the state Legislature would give state and county government immunity from problems caused by the Year 2000 computer bug, unless they were caused by "gross negligence," said Rod Kimura, deputy attorney general, who has been watching the issue for the state.
"If a timely good faith effort to fix the problem is made, that should mean it would not be considered gross negligence," Kimura said.
Mary Patricia Waterhouse, deputy state comptroller, said that while the legislation isn't all that the state administration had hoped for, it provides limitations on lawsuits.
Private-sector representatives are pleased with the bill, which major business groups described as a "good compromise," said Joel Kennedy, representing the private sector members of the Y2K Study Group.
The bill is designed to encourage private businesses to find and fix Y2K computer problems, Kennedy said.
For instance, if a business proves that it engaged in a Year 2000 remediation program which is "commercial reasonable," Kennedy said, recoveries would be limited to out-of-pocket losses.
That means a large, sophisticated company such as a bank or insurer would have to make more of an effort than a small business with a few desktop computers, he said.
Also, damages are limited, but treble damages and noneconomic damage costs can be awarded where Y2K computer problems are intentionally caused, or if corrupted data is knowingly sent without efforts to fix the problem, Kennedy explained.
"Consumers are protected because there are no limitations of liability for claims involving physical injury or death," he said. "Lawsuits between private parties are to be referred to a conference to discuss alternative dispute resolution."
