Washington, D.C., June 30, 1999 --
Congressional representatives and the White House reached a
deal that will ensure continued economic growth in the next
millennium by allowing American businesses to focus resources on
fixing Y2K problems rather than defending against frivolous
lawsuits, according to the American Insurance Association. Recent
meetings between House and Senate members and White House staff
lasting into the early morning hours have resulted a conference
report set to go to the House and Senate floors later this week
that benefits consumers, businesses and the economy.
Melissa Shelk, AIA assistant vice
president, federal affairs, described the compromise as a good,
solid solution to an uncertain event. "This legislation includes
provisions that benefit consumers, companies and the American
economy."
Some compromises included in the
language include a change in the threshold of class action suits.
Now, in order to move a class action case to federal court, there
must be more than 100 claimants and damages must exceed $10
million.
A change to the proportionate
liability provision would require those defendants who are proven
"bad actors" pay triple the share that is not collectable for all
solvent defendants, according to the language. A "bad actor" is
defined as someone who shows reckless disregard for remediation of
systems.
Shelk said, "This bill encourages a
legal environment where problem-solvers compete for business, not
fear frivolous lawsuits, legitimate claims are resolved promptly,
and where legal profiteering cannot take advantage of a
once-in-a-millennium problem."
Shelk praised the conferees who worked
on this legislation and noted it was their hard work that pushed
this legislation forward. The conference report is expected to be
voted on in both houses this week, before the July 4 holiday
recess.
The American Insurance Association is
a trade association representing more than 300 major insurance
companies which provide all lines of property and casualty
insurance. AIA's headquarters is located in Washington, D.C. and
the association has representatives in every state. All AIA press
releases are available at
www.aiadc.org.