Copyright 1999 Plain Dealer Publishing Co.
The
Plain Dealer
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May 22, 1999 Saturday, FINAL / ALL
SECTION: EDITORIALS & FORUM; Pg. 8B
LENGTH: 461 words
HEADLINE:
Y2K LAW, PDQ;
THE PUBLIC INTEREST MUST OUTWEIGH SPECIAL INTERESTS: LIMIT
LIABILITY WITHOUT BANNING LAWSUITS
BODY:
"While the
right to seek redress in court for real damages should remain fundamental,
policymakers should encourage effective alternatives to litigation while
discouraging frivolous lawsuits or civil jury awards that go far beyond what is
necessary and appropriate to deter bad behavior."
That's the Democratic
Leadership Council on how to deal with the computer glitch-in-the-making known
as Y2K. That's why 28 Democrats, despite the White House's and their
congressional leaders' opposition, joined most Republicans in the House the
other day to pass legislation with that common-sense premise. But Democrats
beholden to trial lawyers and special-interest consumer groups decided to hold
the legislation up by unrelated "debate" in the Senate. Just how grievous the
Y2K problem will be is a matter of conjecture. The President's Council on
Year-2000 Conversion advises having on hand a three-day supply of water,
nonperishable foods, batteries and prescription medications, much as you would
for the "usual winter storm." But for all the $50 billion businesses have spent
to glide past the glitch, there will be blips in record-keeping, shipping, etc.,
that spring water, potted meat and the Energizer Bunny won't solve.
Neither will frivolous lawsuits that could run up legal costs "more than
three times the total annual estimated cost of all civil litigation in the
United States," according to the DLC. The American Bar Association foresees
costs that surpass asbestos, breast-implant, tobacco and Superfund litigation
combined.
Add the penchant of some juries to inflate damages, and the
costs soar to $1 trillion. Add, too, the cost to the economy of cutting back
research, development and expansion to avoid Y2K-type suits.
The goal
should be to get over the blips with as little disruption as possible, not to
plant one more money tree for trial lawyers to shake bare. That's why the
legislation includes making potential plaintiffs try mediation for 90 days
before filing suit, which would give companies a chance to correct problems.
It's why limits would be set on punitive damages ($250,000 or three times the
compensatory damages), on the extent of a business' liability (only its share of
the blame) and on class-action suits.
The Clinton White House is in a
bind: Two constituencies that have donated millions of dollars to Democratic
campaigns - trial lawyers and Silicon Valley entrepreneurs - are at odds on this
issue. The entrepreneurs fear the lawsuits; the lawyers, the precedent for wider
tort reform. Senate Republicans' attempts to meet White House hints toward
compromise haven't helped.
Without even the basic limits provided in
this bill, however, the economy will be in a bind, and losers will far outnumber
winners.
LOAD-DATE: May 23, 1999
