The CNMI and other insular areas have been included in the scope of the Y2K legislation, a measure that seeks to protect small businesses and other entities from costly lawsuits that might arise from year 2000 computer failures.
The Y2K measure was transmitted by the US Congress to President Clinton via e-mail.
The President is expected to sign the bill next week through digital signature technology, making it the first legislation to be signed without the use of paper or ink.
The early version of the legislation excluded the CNMI and other insular areas threatening to leave them unprotected from the costly Y2K litigation.
According to the Governor’s Office, the inclusion of the Northern Marianas in the bill was made upon representation by the CNMI’s Washington D.C. attorney Thomas Crowe.
The Y2K Act would establish a 90-day cooling off period before a lawsuit can be filed. This provision is designed to promote a resolution outside of litigation.
The act also contains protection to ensure that residential homeowners cannot be foreclosed upon due to Y2K failures.
The legislation seeks to discourage lawsuits by limiting punitive damage awards against small business and most individuals to $250,000 or three times the actual damages whichever is less.
It also provides for proportionate liability wherein defendants will generally be held liable only for the share of damages they cause.
The legislation will only apply to Y2K failures that occur before Jan. 1, 2003, and will not apply to personal injury and wrongful death claims.
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