§6612 — Title 15 Commerce and Trade | U.S. Code

Summary

Plaintiffs must prove that a defendant knew or should have known about a Year 2000 (Y2K) problem using the state’s proof rules in effect on the day before January 1, 1999, unless the claim is for a broken or cancelled contract. Substantial privity means either a contract between the parties or that the plaintiff was specifically named beforehand as the person to benefit from the services. Claims that require proof of the defendant’s knowledge do not include ordinary negligence but do include fraud, constructive fraud, breach of fiduciary duty, negligent misrepresentation, and interference with contract or economic advantage. The fact that a failed system, product, or component was sold, leased, rented, or controlled by the defendant is not enough by itself to win damages; contract claims follow the contract’s terms. Protections for information exchanges in section 4 of the Year 2000 Information and Readiness Disclosure Act (Public Law 105–271) apply to any Y2K lawsuit.

Title 15, §6612

Commerce and Trade — Source: USLM XML via OLRC

(a)In a Y2K action other than a claim for breach or repudiation of contract, and in which the defendant’s actual or constructive awareness of an actual or potential Y2K failure is an element of the claim, the defendant is not liable unless the plaintiff establishes that element of the claim by the standard of evidence under applicable State law in effect on the day before January 1, 1999.

(b)(1)With respect to any Y2K action for money damages in which—

(A)the defendant is not the manufacturer, seller, or distributor of a product, or the provider of a service, that suffers or causes the Y2K failure at issue;

(B)the plaintiff is not in substantial privity with the defendant; and

(C)the defendant’s actual or constructive awareness of an actual or potential Y2K failure is an element of the claim under applicable law,

(2)For purposes of paragraph (1)(B), a plaintiff and a defendant are in substantial privity when, in a Y2K action arising out of the performance of professional services, the plaintiff and the defendant either have contractual relations with one another or the plaintiff is a person who, prior to the defendant’s performance of such services, was specifically identified to and acknowledged by the defendant as a person for whose special benefit the services were being performed.

(3)For purposes of paragraph (1)(C), claims in which the defendant’s actual or constructive awareness of an actual or potential Y2K failure is an element of the claim under applicable law do not include claims for negligence but do include claims such as fraud, constructive fraud, breach of fiduciary duty, negligent misrepresentation, and interference with contract or economic advantage.

(c)The fact that a Y2K failure occurred in an entity, facility, system, product, or component that was sold, leased, rented, or otherwise within the control of the party against whom a claim is asserted in a Y2K action shall not constitute the sole basis for recovery of damages in that action. A claim in a Y2K action for breach or repudiation of contract for such a failure is governed by the terms of the contract.

(d)The protections for the exchanges of information provided by section 4 of the Year 2000 Information and Readiness Disclosure Act (Public Law 105–271) shall apply to any Y2K action.

Editorial Notes

References in Text

section 4 of the Year 2000 Information and Readiness Disclosure Act, referred to in subsec. (d), is section 4 of Pub. L. 105–271, which was formerly set out in a note under section 1 of this title.

§6612 State of mind; bystander liability; control

Summary

Title 15, §6612

Notes & Related Subsidiaries

Editorial Notes

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