[Congressional Record Volume 144, Number 97 (Monday, July 20, 1998)]
[Senate]
[Pages S8576-S8577]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  THERE THEY GO AGAIN: WILL TRIAL LAWYERS STIFLE YEAR 2000 SOLUTIONS?

 Mr. FAIRCLOTH. Mr. President, I rise to address the imminent 
wave of Year 2000 lawsuits that will flood our courts and enrich 
thousands of trial lawyers at the expense of American consumers. I also 
rise to commend President Clinton for his announcement that he will 
propose legislation to shield businesses from lawsuits based on 
information shared in efforts to solve these so-called Y2K problems.
  Based on the information that I have received, I believe that his 
approach is too narrow, but it is a step in the right direction.
  It is a step away from greedy trial lawyers and litigation towards 
creative computer programmers and solutions.
  We face the so-called millennial glitch--the Year 2000 problem--
because most software programs cannot recognize dates after December 
31, 1999.
  Over the past twenty years, to save computer memory that was 
prohibitively expensive, programmers shortened the date field in 
software programs to hold only the last two digits of the year.
  This glitch will cause computer systems to malfunction and to crash 
if these programs are not rewritten and fixed. Certainly, this is a 
major problem, one that has sent computer programmers scrambling for 
solutions.
  This is one of the most important issues before businesses, Mr. 
President, and the costs of Y2K compliance are estimated to be hundreds 
of billions of dollars. The junior Senator from Utah, Mr. Bennett, is 
to be commended for his fine work on the Year 2000 subcommittee.
  We will face computer chaos if these problems are not resolved before 
the clock strikes midnight on December 31, 1999. We are looking at the 
possibility of power outages, frozen bank accounts, even the specter of 
a global recession.
  Unfortunately, though, the solutions are not all clear.
  The efficient exchange of information among the involved parties--
programmers, computer companies, and consumers--is critical. We will 
never find solutions if all parties are not free to exchange all the 
relevant information.
  There is, however, a major hurdle to this critical exchange of 
information--the trial lawyers. The trial lawyers are excited by this 
Year 2000 problem.
  The Gartner Group, a consulting firm, estimates that the costs of the 
Y2K fix will run up to $600 billion, but that the legal costs--the 
trial lawyer taxes--may explode to one trillion dollars.
  Yes, Mr. President, $1 trillion for litigation.
  The projected trillion dollars in legal fees is yet another ``trial 
lawyer tax'' that greedy plaintiffs' lawyers impose on the American 
people in the form of increased costs inevitably passed on to 
consumers.
  The only jobs that the trial lawyers will create with their Year 2000 
lawsuits are in the Lear jet factory as the orders come rolling in from 
these millionaire trial lawyers.
  The trial lawyers see another problem to exploit for financial gain, 
another opportunity for personal enrichment at the expense of the 
nation.
  The justifiable fear that businesses have of these trial lawyers is 
actually slowing down efforts to solve these critical problems.
  The Washington Post reported that, ``Many companies have resisted 
exchanging technical advice with one another, delaying the pace of 
repair work, because they fear costly litigation if the information 
they provide inadvertently turns out to be inaccurate.''
  So, if the Social Security checks are late and the power gets turned 
off because computer companies cannot share information with the 
Federal government, you can thank the trial lawyers and their greed.
  The headlines may proclaim that the Social Security Administration is 
well along in its Year 2000 progress, and it is amongst the more 
responsive agencies, about 90 percent of the way to getting its 
computers ready.
  However, Mr. President, the Treasury Department--not the Social 
Security Administration--prints Social Security checks. The bad news is 
that Treasury is amongst the least responsive federal agencies to the 
Y2K issue.
  I hope that trial lawyers' greed won't leave older Americans 
shivering in the cold on New Year's Day in the year 2000 because 
everyone was too afraid of being sued to work together on a solution.
  As I said, the threat of a tidal wave of expensive litigation is 
shutting down the exchange of information, which is

[[Page S8577]]

essential to a resolution of this issue. Further, however, the stampede 
of trial lawyers to the courthouse is also contributing to a shortage 
of qualified staff to deal with the issue.
  Many specialized firms that could work on this issue--firms with the 
technical expertise to do this job--are, in fact, avoiding it because 
they fear that they will become the target of the trial lawyers.
  The pattern is a familiar one. Trial lawyers, many of whom sue on a 
contingent fee basis that guarantees them a fixed percentage of their 
client's award, look for the parties with the ``deep pockets.'' A 
company with deep pockets is likely to be sued even if its systems are 
working properly.
  It's the old ``supply chain'': if a supplier, partner, or customer 
winds up with a Year 2000 problem, then the lawsuits will likely ripple 
all the way through the supply chain.
  One lawyer involved in this Year 2000 litigation observed that, if 
the problem drives the suppliers and customers into bankruptcy, the 
plaintiffs are likely to sue ``everyone standing around the dead 
body.''
  The lawyers are getting ready, Mr. President, and there have been 
litigation summits in California.
  In fact, Bill Lerach, known for the securities ``strike suits'' that 
prompted reform legislation, is already filing Year 2000 lawsuits. He 
even filed one against Symantec Corporation, the maker of the popular 
Norton Anti-Virus software. Symantec is a golden oldie for Mr. Lerach. 
He sued this company in 1994 in one of his self-described ``favorite'' 
securities lawsuits.
  This outstanding member of the plaintiffs' bar even sued the pop 
singers ``Milli Vanilli'' for lip-synching its songs. He sued on behalf 
of fans who felt betrayed.
  This courtroom crusader also sued Ragu for selling a ``fresh 
Italian'' salad dressing that wasn't fresh or Italian.
  This is a man who paid $64,000 in fines for breaking electoral laws 
and paid court fines due to his lawsuit antics.
  It's time to choose, Mr. President, between these trial lawyers and 
the average Americans.
  Do we stand with Mr. Lerach and his greedy band of litigators or with 
the regular people who just want solutions to a problem that threatens 
their parents' Social Security checks?
  I commend President Clinton for his proposal. I believe that we need 
something far more broad, but it is a first step, and I am ready to 
move forward.
  Let's tell the trial lawyers and their Gucci-loafered lobbyists that 
we stand with the American people, not the special interests.
  I'm worried about the Social Security checks getting out on time, not 
the court papers getting in on time.
  I want solutions, not lawsuits. I'm looking out for the American 
people and their interests, not the trial lawyers and the special 
interests.
  The trial lawyers want to turn the Year 2000 issue into a lawsuit 
``House of Horrors'' but I'm here to deny them a building 
permit.
  (At the request of Mr. Daschle, the following statement was ordered 
to be printed in the Record.)

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