Sweeping legislation was passed to prevent and address disruptions that may be caused by the so-called Y2K bug. Anticipating a rush to the courthouse over year 2000 computer glitches, lawmakers approved a bill, which encourages sellers of computer products and services to identify problems and offer free or low cost solutions before harm occurs.
The Texas Y2K law calls for creation of a state web site with links to vendors for easy access to problem-solving information and a toll-free state number with the same information.
Procedures are provided for resolving disputes without a lawsuit, such as pre-litigation notice and alternative dispute resolution. Should efforts to avoid litigation fail, a lawsuit must be filed no later than two years after the computer date failure caused harm. Also, the lawsuit must be filed no later than 15 years after the computer product or service was sold.
The Y2K law excludes bodily injury and death cases and limits speculative damages (such as pain and suffering) and damages the claimant could have avoided. Insurance coverage or benefits are not affected by this law.
No exemptions are provided if a manufacturer or seller expressly represented that the computer product or service would not have a Y2K problem. Plus, the seller of a computer product or service is still permitted to file a product liability lawsuit against an upstream vendor to recover losses.