LawSight E-Letter

Federal Year 2000 Disclosure Act has Impending Deadlines, 'No Protection Bubble'

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President Clinton signed the ‘Year 2000 Information and Readiness Disclosure Act of 1998' on October 19, 1998. The Act provides protections against introduction into evidence for year 2000 related statements which qualify under its various provisions. Two key factors should receive the attention of business and business attorneys on an expedited basis.

1 - 'Previously made' year 2000 statements (after January 1, 1996 and prior to October 20, 1998) which otherwise qualify under the Act may be designated for exclusionary protection in state or federal civil litigation. The deadline for identifying all Y2k statements and taking the necessary affirmative steps to claim protection for each statement is December 3, 1998.

2 - Year 2000 related statements made on or after October 20, 1998 may receive evidentiary protection by prominent labeling according to Act requirements. Statements made after October 20 which are not so labeled fall into a 'no protection bubble', and can not receive evidentiary protections under the Act.

While it appears that the ‘no protection bubble' was an oversight by the Congress, business cannot reasonably rely on the prospect of curative legislation. Organizations should cease any ongoing statements which may be related to the year 2000 until they have reviewed their entire year 2000 statement policy in light of the new opportunities and requirements of the Act.

For further information on these and other year 2000 related issues, consult www.lawsight.com/x2k.htm. The Act will be the subject of an upcoming CLE seminar; details are available on LawSight.