[House Report 106-134]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 106-134
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PROVIDING FOR THE CONSIDERATION OF H.R. 775, YEAR 2000 READINESS AND
RESPONSIBILITY ACT
_______
May 11, 1999.--Referred to the House Calendar and ordered to be printed
_______
Mr. Dreier, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 166]
The Committee on Rules, having had under consideration
House Resolution 166, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
summary of provisions of resolution
The resolution provides for the consideration of H.R. 775,
the ``Year 2000 Readiness and Responsibility Act,'' under a
structured rule. The rule provides one hour of general debate
divided equally between the chairman and ranking minority
member of the Committee on the Judiciary.
The rule makes in order as an original bill for the purpose
of amendment the Committee on the Judiciary amendment in the
nature of a substitute now printed in the bill modified by the
amendments printed in part 1 of this report. The rule also
makes in order only those amendments printed in part 2 of this
report.
The rule provides that amendments made in order may be
offered only in the order printed in the report, may be offered
only by a Member designated in the report, shall be considered
as read, shall be debatable for the time specified in the
report equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be
subject to a demand for division of the question in the House
or in the Committee of the Whole.
The rule allows the Chairman of the Committee of the Whole
to postpone votes during consideration of the bill, and to
reduce voting time to five minutes on a postponed question if
the vote follows a fifteen minute vote. Finally, the rule
provides one motion to recommit with or without instructions.
SUMMARY OF AMENDMENTS MADE IN ORDER
Part 1--Amendments modifying the amendment on the nature of a
substitute
To modify section 303 to correct a mistake introduced into
the text of H.R. 775 when technical and conforming changes were
made to the bill ordered reported by the Committee.
To strike section 304(a) relating to the Year 2000 Recovery
Fund.
Part 2--Amendments made in order under the rule
Davis (VA)--(20 Minutes): Defines what types of damages are
covered under the bill thereby giving uniformity to the
legislation, and eliminates possible confusion by courts in
states that allow for other types of monetary awards, such as
restitution or discouragement of profit; and changes the
effective date from February 22, 1999 to January 1, 1999.
Moran (VA)--(20 Minutes): Exempts all claims,
counterclaims, cross-claims, and third party claims that arise
out of an underlying action for personal injury.
Jackson-Lee--(20 Minutes): Adds clarifying language that
states that the ``particularity'' requirement in section 101
still allows the notification to be drafted using layman's
terms without specialized and technical details.
Scott--(20 Minutes): Strikes Section 304 relating to
``Damages Limitation.''
Nadler--(20 Minutes): Strikes the section of the bill that
limits class action lawsuits.
Lofgren/Conyers/Boucher--(60 Minutes): Amendment in the
Nature of a Substitute. Provides for specific pleading
requirements, a duty to mitigate damages, and limits class
action claims to those involving material defects; specifies
that contracts shall be fully enforceable and that defendants
may raise the defense of impossibility or commercial
impracticability, notwithstanding any changes in state law
after January 1, 1999; provides that in tort and other non-
contractual cases, there shall be a reasonable apportionment of
liability by co-defendants and limits plaintiffs from asserting
claims for economic damages that are not covered by contract.
Eliminates sections that (1) created an unprecedented defense
for undefined conduct, namely, ``reasonable efforts''; (2)
placed various limitations and dollar caps on the collection of
punitive damages; (3) capped the liability of officers and
directors; (4) federalized class actions; and (5) mandated a
``loser pays'' mechanism.
PART 1--TEXT OF AMENDMENTS MODIFYING THE AMENDMENT IN THE NATURE OF A
SUBSTITUTE
Page 22, line 17, insert ``sold by, leased by, rented by,
or otherwise'' after ``was''.
Page 23, strike lines 2 through 9 and redesignate the
succeeding subsections accordingly.
PART 2--TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE
1. An Amendment To Be Offered by Representative Davis of Virginia, or a
Designee, Debatable for 20 Minutes.
Page 4, add the following after line 23 and redesignate
succeeding paragraphs accordingly:
(2) Damages.--The term ``damages'' means punitive,
compensatory, and restitutionary relief.
Page 8, line 18, strike ``February 22, 1999'' and insert
``January 1, 1999''.
----------
2. An Amendment To Be Offered by Representative Moran of Virginia, or a
Designee, Debatable for 20 minutes.
Page 9, strike lines 3 through 5 and insert the following:
(c) Exclusion of Personal Injury Claims.--None of the
provisions of this Act shall apply to any claim based on
personal injury, including any claim asserted by way of claim,
counterclaim, cross-claim, third-party claim, or otherwise,
that arises out of an underlying action for personal injury.
Page 9, insert the following after line 9:
(e) Certain Other Actions.--A person who is liable for
damages, whether by settlement or judgment, in a claim or civil
action to which this Act does not apply by reason of subsection
(c) and whose liability, in whole or in part, is the result of
a year 2000 failure may pursue any remedy otherwise available
under Federal or State law against the person responsible for
that year 2000 failure to the extent of recovering the amount
of those damages. Any such remedy shall not be subject to this
Act.
----------
3. An Amendment To Be Offered by Representative Jackson-Lee of Texas,
or a Designee, Debatable for 20 minutes.
Page 10, line 10, strike ``Except'' and insert the
following: ``The notice under this subsection does not require
descriptions of technical specifications or other technical
details with respect to the material defect at issue. Except''.
----------
4. An Amendment To Be Offered by Representative Scott of Virginia, or a
Designee, Debatable for 20 Minutes
Page 23, strike line 1 and all that follows through page
25, line 8, and redesignate succeeding sections, and references
thereto, accordingly.
----------
5. An Amendment To Be Offered by Representative Nadler of New York, or
a Designee, Debatable for 20 minutes
Strike title IV and redesignate title V, sections therein,
and references thereto, accordingly.
----------
6. An Amendment To Be Offered by Representative Lofgren of California,
or Representative Conyers of Michigan, or a Designee, Debatable for 60
minutes
Strike all after the enacting clause and insert the
following:
SECTION. 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Y2K
Readiness and Remediation Act''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings, purposes, and scope.
Sec. 3. Definitions.
Sec. 4. Preemption of State law.
TITLE I--COOLING OFF PERIOD
Sec. 101. Notice and opportunity to cure.
Sec. 102. Out of court settlement.
TITLE II--SPECIFIC PLEADINGS AND DUTY TO MITIGATE
Sec. 201. Pleading requirements.
Sec. 202. Duty to mitigate damages.
TITLE III--YEAR 2000 CIVIL ACTIONS INVOLVING CONTRACTS
Sec. 301. Contract preservation.
Sec. 302. Impossibility or commercial impracticability.
TITLE IV--YEAR 2000 CIVIL ACTIONS INVOLVING TORT AND OTHER
NONCONTRACTUAL CLAIMS
Sec. 401. Fair share liability.
Sec. 402. Economic losses.
TITLE V--EFFECTIVE DATE
Sec. 501. Effective date.
SEC. 2. FINDINGS, PURPOSES, AND SCOPE.
(a) Findings.--Congress finds the following:
(1) Many information technology systems, devices, and
programs are not capable of recognizing certain dates
in 1999 and after December 31, 1999, and will read
dates in the year 2000 and thereafter as if those dates
represent the year 1900 or thereafter or will fail to
process those dates.
(2) If not corrected, the year 2000 problem described
above and the resulting failures could incapacitate
systems that are essential to the functioning of
markets, commerce, consumer products, utilities,
Government, and safety and defense systems, in the
United States and throughout the world.
(3) It is in the national interest that producers and
users of technology products concentrate their
attention and resources in the time remaining before
January 1, 2000, on assessing, fixing, testing, and
developing contingency plans to address any and all
outstanding year 2000 computer date change problems, so
as to minimize possible disruptions associated with
computer failures.
(4) The year 2000 computer date change problems may
adversely affect businesses and other users of
technology products in a unique fashion, prompting
unprecedented litigation and the delays, expense,
uncertainties, loss of control, adverse publicity, and
animosities that frequently accompany litigation could
exacerbate the difficulties associated with the Year
2000 date change and compromise efforts to resolve
these difficulties.
(b) Purposes.--Based upon the power contained in article I,
section 8, clause 3 of the Constitution of the United States,
the purposes of this Act are--
(1) to establish uniform legal standards that give
all businesses and users of technology products
reasonable incentives to solve year 2000 computer date-
change problems before they develop;
(2) to encourage the resolution of year 2000 computer
date-change disputes involving economic damages without
recourse to unnecessary, time consuming, and wasteful
litigation; and
(3) to lessen burdens on interstate commerce by
discouraging insubstantial lawsuits, while also
preserving the ability of individuals and businesses
that have suffered real injury to obtain complete
relief.
(c) Scope.--Except as provided in section 201(c) or other
provisions of this Act, this Act applies only to claims for
commercial loss.
SEC. 3. DEFINITIONS.
In this Act:
(1) Person.--The term ``person'' means any natural
person and any entity, organization, or enterprise,
including any corporation, company (including any joint
stock company), association, partnership, trust, or
governmental entity.
(2) Plaintiff.--The term ``plaintiff'' means any
person who asserts a year 2000 claim.
(3) Defendant.--The term ``defendant'' means any
person against whom a year 2000 claim is asserted.
(4) Contract.--The term ``contract'' means a
contract, tariff, license, or warranty.
(5) Year 2000 civil action.--The term ``year 2000
civil action''--
(A) means any civil action of any kind
brought in any court under Federal, State, or
foreign law, in which--
(i) a year 2000 claim is asserted; or
(ii) any claim or defense is related
to an actual or potential year 2000
failure;
(B) includes a civil action commenced in any
Federal or State court by a department, agency,
or instrumentality of the United States
government or of a State government when acting
in a commercial or contracting capacity; but
(C) does not include any action brought by a
Federal, State, or other public entity, agency,
or authority acting in a regulatory,
supervisory, or enforcement capacity.
(6) Year 2000 claim.--The term ``year 2000 claim''
means any claim or cause of action of any kind, whether
asserted by way of claim, counterclaim, cross-claim,
third-party claim, or otherwise, in which the
plaintiff's alleged loss or harm resulted from an
actual or potential year 2000 failure.
(7) Year 2000 failure.--The term ``year 2000
failure'' means any failure by any device or system
(including any computer system and any microchip or
integrated circuit embedded in another device or
product), or any software, firmware, or other set or
collection of processing instructions, however
constructed, in processing, calculating, comparing,
sequencing, displaying, storing, transmitting, or
receiving year 2000 date related data, including
failures--
(A) to administer accurately or account for
transitions or comparisons from, into, and
between the 20th and 21st centuries, and
between 1999 and 2000;
(B) to recognize or process accurately any
specific date, or to account accurately for the
status of the year 2000 as a leap year,
including recognition and processing of the
correct date on February 29, 2000.
(8) Material defect.--
(A) In general.--The term ``material defect''
means a defect in any item, whether tangible or
intangible, or in the provision of a service,
that substantially prevents the item or service
from operating or functioning as designed or
intended.
(B) Exclusions.--The term does not include
any defect that--
(i) has an insignificant or de
minimis effect on the operation or
functioning of an item;
(ii) affects only a component of an
item that, as a whole, substantially
operates or functions as designed; or
(iii) has an insignificant or de
minimis effect on the efficacy of the
service provided.
(9) Economic loss.--The term ``economic loss''--
(A) means any damages other than damages
arising out of personal injury or damage to
tangible property; and
(B) includes damages for--
(i) lost profits or sales;
(ii) business interruption;
(iii) losses indirectly suffered as a
result of the defendant's wrongful act
or omission;
(iv) losses that arise because of the
claims of third parties;
(v) losses that are required to be
pleaded as special damages; or
(vi) items defined as consequential
damages in the Uniform Commercial Code
or an analogous State commercial law.
(10) Personal injury.--The term ``personal injury''
means physical injury to a natural person, including --
(i) death as a result of a physical
injury; and
(ii) mental suffering, emotional
distress, or similar injuries suffered
by that person in connection with a
physical injury.
(11) State.--The term ``State'' means any State of
the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Northern Mariana
Islands, the United States Virgin Islands, Guam,
American Samoa, and any other territory or possession
of the United States, and any political subdivision
thereof.
(12) Alternative dispute resolution.--The term
``alternative dispute resolution'' means any process or
proceeding, other than adjudication by a court or in an
administrative proceeding, to assist in the resolution
of issues in controversy, through processes such as
early neutral evaluation, mediation, minitrial, and
arbitration.
(13) Commercial loss.--The term ``commercial loss''
means any loss or harm incurred by a plaintiff in the
course of operating a business enterprise that provides
goods or services for remuneration, if the loss or harm
is to the business enterprise.
SEC. 4. PREEMPTION OF STATE LAW.
Except as otherwise provided in this Act, this Act supersedes
State law to the extent that it establishes a rule of law
applicable to a year 2000 claim that is inconsistent with State
law.
TITLE I--COOLING OFF PERIOD
SEC. 101. NOTICE AND OPPORTUNITY TO CURE.
(a) Notice of Cooling Off Period.--
(1) In general.--Before filing a year 2000 claim,
except an action for a claim that seeks only injunctive
relief, a prospective plaintiff shall be required to
provide to each prospective defendant a verifiable
written notice that identifies and describes with
particularity, to the extent possible before
discovery--
(A) any manifestation of a material defect
alleged to have caused injury;
(B) the injury allegedly suffered or
reasonably risked by the prospective plaintiff;
and
(C) the relief or action sought by the
prospective plaintiff.
(2) Commencement of action.--Except as provided in
subsections (c) and (e), a prospective plaintiff shall
not file a year 2000 claim in Federal or State court
until the expiration of the 90-day period beginning on
the date on which the prospective plaintiff provides
notice under paragraph (1).
(b) Response to Notice.--Not later than 30 days after receipt
of the notice specified in subsection (a), each prospective
defendant shall provide each prospective plaintiff a written
statement that--
(1) acknowledges receipt of the notice; and
(2) describes any actions that the defendant will
take, or has taken, to address the defect or injury
identified by the prospective plaintiff in the notice.
(c) Failure to Respond.--If a prospective defendant fails to
respond to a notice provided under subsection (a)(1) during the
30-day period prescribed in subsection (b) or does not include
in the response a description of actions referred to in
subsection (b)(2)--
(1) the 90-day waiting period identified in
subsection (a) shall terminate at the expiration of the
30-day period specified in subsection (b) with respect
to that prospective defendant; and
(2) the prospective plaintiff may commence a year
2000 civil action against such prospective defendant
immediately upon the termination of that waiting
period.
(d) Failure to Provide Notice.--
(1) In general.--Subject to subsections (c) and (e),
a defendant may treat a complaint filed by the
plaintiff as a notice required under subsection (a) by
so informing the court and the plaintiff if the
defendant determines that a plaintiff has commenced a
year 2000 civil action--
(A) without providing the notice specified in
subsection (a); or
(B) before the expiration of the waiting
period specified in subsection (a).
(2) Stay.--If a defendant elects under paragraph (1)
to treat a complaint as a notice--
(A) the court shall stay all discovery and
other proceedings in the action for the period
specified in subsection (a) beginning on the
date of filing of the complaint; and
(B) the time for filing answers and all other
pleadings shall be tolled during the applicable
period.
(e) Effect of Waiting Periods.--In any case in which a
contract, or a statute enacted before March 1, 1999, requires
notice of nonperformance and provides for a period of delay
before the initiation of suit for breach or repudiation of
contract, the contractual period of delay controls and shall
apply in lieu of the waiting period specified in subsections
(a) and (d).
(f) Sanction for Frivolous Invocation of The Stay
Provision.--If a defendant acts under subsection (d) to stay an
action, and the court subsequently finds that the assertion by
the defendant that the action is a year 2000 civil action was
frivolous and made for the purpose of causing unnecessary
delay, the court may impose a sanction, including an order to
make payments to opposing parties in accordance with Rule 11 of
the Federal Rules of Civil Procedure or applicable State rules
of civil procedure.
(g) Computation of Time.--For purposes of this section, the
rules regarding computation of time shall be governed by the
applicable Federal or State rules of civil procedure.
(h) Single Period.--With respect to any year 2000 claim--
(1) to which subsection (c)(2) regarding commencement
of actions applies, or
(2) to which subsection (d)(2) requiring stays
applies,
only one waiting period, not exceeding 90 days, shall be
accorded to the parties.
(i) Applicability of Statutes of Limitations.--Any applicable
statute of limitations shall toll during the period during
which a claimant has filed notice under subsection (a).
SEC. 102. OUT OF COURT SETTLEMENT.
(a) Requests Made During Notification (Cooling Off) Period.--
At any time during the 90-day notification period under section
101(a), either party may request the other party to use
alternative dispute resolution. If, based upon that request,
the parties enter into an agreement to use alternative dispute
resolution, the parties may also agree to an extension of that
90-day period.
(b) Request Made After Notification Period.--At any time
after expiration of the 90-day notification period under
section 101(a), whether before or after the filing of a
complaint, either party may request the other party to use
alternative dispute resolution.
(c) Payment Date.--If a dispute that is the subject of the
complaint or responsive pleading is resolved through
alternative dispute resolution as provided in subsection (a) or
(b), the defendant shall pay any amount of funds that the
defendant is required to pay the plaintiff under the settlement
not later than 30 days after the date on which the parties
settle the dispute, and all other terms shall be implemented as
promptly as possible based upon the agreement of the parties,
unless another period of time is agreed to by the parties or
established by contract between the parties.
TITLE II--SPECIFIC PLEADINGS AND DUTY TO MITIGATE
SEC. 201. PLEADING REQUIREMENTS.
(a) Nature and Amount of Damages.--In any year 2000 civil
action in which a plaintiff seeks an award of money damages,
the complaint shall state with particularity to the extent
possible before discovery with regard to each year 2000 claim--
(1) the nature and amount of each element of damages;
and
(2) the factual basis for the calculation of the
damages.
(b) Material Defects.--In any year 2000 civil action in which
the plaintiff alleges that a product or service was defective,
the complaint shall, with respect to each year 2000 claim--
(1) identify with particularity the manifestations of
the material defects; and
(2) state with particularity the facts supporting the
conclusion that the defects were material.
(c) Material Defects in Class Action Minimum Injury
Requirement.--In any year 2000 civil action involving a year
2000 claim that a product or service is defective, the action
may be maintained as a class action in Federal or State court
with respect to that claim only if--
(1) the claim satisfies all other prerequisites
established by applicable Federal or State law; and
(2) the court finds that the alleged defect in the
product or service was a material defect with respect
to a majority of the members of the class.
This subsection applies to year 2000 claims for commercial loss
and to year 2000 claims for loss or harm other than commercial
loss.
(d) Motion to Dismiss; Stay of Discovery.--
(1) Dismissal for failure to meet pleading
requirements.--In any year 2000 civil action, the court
shall, on the motion of any defendant, dismiss without
prejudice any year 2000 claim asserted in the complaint
if any of the requirements under subsection (a), (b),
or (e) is not met with respect to the claim.
(2) Stay of discovery.--Subject to the 90-day single
period provisions of section 101(h), in any year 2000
civil action, all discovery and other proceedings shall
be stayed during the pendency of any motion pursuant to
this subsection to dismiss, unless the court finds upon
the motion of any party that particularized discovery
is necessary to preserve evidence or prevent undue
prejudice to that party.
(3) Preservation of evidence.--
(A) In general.--
(i) Treatment of evidence.-- During
the pendency of any stay of discovery
entered under paragraph (2), unless
otherwise ordered by the court, any
party to the action shall treat the
items described in clause (ii) as if
they were a subject of a continuing
request for production of documents
from an opposing party under applicable
Federal or State rules of civil
procedure.
(ii) Items.--The items described in
this clause are all documents, data
compilations (including electronically
stored or recorded data), and tangible
objects that--
(I) are in the custody or
control of the party described
in clause (i); and
(II) are relevant to the
allegations.
(B) Sanction for willful violation.--A party
aggrieved by the willful failure of an opposing
party to comply with subparagraph (A) may apply
to the court for an order awarding appropriate
sanctions.
SEC. 202. DUTY TO MITIGATE DAMAGES.
Damages awarded for any year 2000 claim shall exclude any
amount that the plaintiff reasonably should have avoided in
light of any disclosure or information provided to the
plaintiff by defendant.
TITLE III--YEAR 2000 CIVIL ACTIONS INVOLVING CONTRACTS
SEC. 301. CONTRACT PRESERVATION.
(a) In General.--Subject to subsection (b), in resolving any
year 2000 claim each written contractual term, including any
limitation or exclusion of liability or disclaimer of warranty,
shall be strictly enforced, unless the enforcement of that term
would contravene applicable State law as of January 1, 1999.
(b) Interpretation of Contract.--In any case in which a
contract under subsection (a) is silent with respect to a
particular issue, the interpretation of the contract with
respect to that issue shall be determined by applicable law in
effect at the time that the contract was entered into.
SEC. 302. IMPOSSIBILITY OR COMMERCIAL IMPRACTICABILITY.
(a) In General.--In any year 2000 civil action in which a
year 2000 claim is advanced alleging a breach of contract or
related claim, in resolving that claim applicability of the
doctrines of impossibility and commercial impracticability
shall be determined by applicable law in existence on January
1, 1999.
(b) Rule of Construction.--Nothing in this Act shall be
construed as limiting or impairing a party's right to assert
defenses based upon the doctrines referred to in subsection
(a).
TITLE IV--YEAR 2000 CIVIL ACTIONS INVOLVING TORT AND OTHER
NONCONTRACTUAL CLAIMS
SEC. 401. FAIR SHARE LIABILITY.
(a) General Rule.--Subject to subsection (d), in any year
2000 civil action, the liability of each tort feasor or
noncontractual defendant shall be joint and several, subject to
the court's equitable discretion to determine, following upon a
finding of proportional responsibility, that the liability of a
tort feasor or noncontractual defendant (as the case may be) of
minimal responsibility shall be several only and not joint.
(b) Amount of Liability.--Each defendant that is severally
liable in a year 2000 civil action shall be liable only for the
amount of loss allocated to the defendant in direct proportion
to the percentage of responsibility of the defendant
(determined in accordance with subsection (c)) for such harm.
(c) Determination of Responsibility.--
(1) In general.--In any year 2000 civil action, the
court shall instruct the jury to answer special
interrogatories, or if there is no jury, make findings,
with respect to each defendant and plaintiff, and each
of the other persons claimed by any of the parties to
have caused or contributed to the loss incurred by the
plaintiff, including persons who have entered into
settlements with the plaintiff or plaintiffs,
concerning the percentage of responsibility of that
person, measured as a percentage of the total fault of
all persons who caused or contributed to the total loss
incurred by the plaintiff.
(2) Contents of special interrogatories or
findings.--The responses to interrogatories, or
findings, as appropriate, under paragraph (1) shall
specify--
(A) the total amount of damages that the
plaintiff is entitled to recover; and
(B) the percentage of responsibility of each
person found to have caused or contributed to
the loss incurred by the plaintiff or
plaintiffs.
(3) Factors for consideration.--In determining the
percentage of responsibility under this paragraph, the
trier of fact shall consider--
(A) the nature of the conduct of each person
alleged to have caused or contributed to the
loss incurred by the plaintiff; and
(B) the nature and extent of the causal
relationship between the conduct of each such
person and the damages incurred by the
plaintiff or plaintiffs.
(d) Special Rules for Joint Liability.--
(1) In general.--Notwithstanding subsection (a), in
any case the liability of a defendant to which
subsection (a) applies in a year 2000 civil action is
joint and several if the trier of fact specifically
determines that the defendant --
(A) acted with specific intent to injure the
plaintiff; or
(B) knowingly committed fraud.
(2) Knowing commission of fraud described.--For
purposes of paragraph 1(B), a defendant knowingly
committed fraud if the defendant--
(A) made an untrue statement of a material
fact, with actual knowledge that the statement
was false;
(B) omitted a fact necessary to make the
statement not be misleading, with actual
knowledge that, as a result of the omission,
the statement was false; and
(C) knew that the plaintiff was reasonably
likely to rely on the false statement.
(3) Recklessness.--For purposes of paragraph (1),
reckless conduct by the defendant does not constitute
either a specific intent to injure, or the knowing
commission of fraud, by the defendant.
(e) Contribution.--A defendant who is jointly and severally
liable for damages in a year 2000 civil action may recover
contribution for such damages from any other person who, if
joined in the original action, would have been liable for the
same damages. A claim for contribution shall be determined
based on the percentage of responsibility of the claimant and
of each person against whom a claim for such contribution is
made.
(f) Statute of Limitations for Contribution.--An action for
contribution under subsection (e) in connection with a year
2000 civil action may not be brought later than six months
after the entry of a final, nonappealable judgment in the year
2000 civil action.
SEC. 402. ECONOMIC LOSSES.
(a) In general.--Subject to subsection (b), a party to a year
2000 civil action may not recover economic losses for a year
2000 claim advanced in the action that is based on tort unless
the party is able to show that at least one of the following
circumstances exists:
(1) The recovery of these losses is provided for in
the contract to which the party seeking to recover such
losses is a party.
(2) If the contract is silent on those losses, and
the application of the applicable Federal or State law
that governed interpretation of the contract at the
time the contract was entered into would allow recovery
of such losses.
(3) These losses are incidental to a claim in the
year 2000 civil action based on personal injury caused
by a year 2000 failure.
(4) These losses are incidental to a claim in the
year 2000 civil action based on damage to tangible
property caused by a year 2000 failure.
(b) Treatment of Economic Losses.--Economic losses shall be
recoverable in a year 2000 civil action only if applicable
Federal law, or applicable State law embodied in statute or
controlling judicial precedent as of January 1, 1999, permits
the recovery of such losses in the action.
TITLE V--EFFECTIVE DATE
SEC. 501. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take
effect on the date of enactment of this Act.