Download This Version in Microsoft Word format
FREE CONFERENCE COMMITTEE REPORT ADOPTED --
NOT PRINTED
June 22, 1999
H. 3759
Introduced by Reps. Cobb-Hunter, Wilkins, Seithel, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cooper, Cotty, Dantzler, Davenport, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harvin, Haskins, Hawkins, Hayes, J. Hines, Hinson, Howard, Inabinett, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Mack, Martin, Mason, McCraw, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, Scott, Sharpe, Simrill, D. Smith, F. Smith, R. Smith, Stille, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Wilder, Wilkes, Witherspoon, Woodrum and Young-Brickell
S. Printed 6/2/99--S.
Read the first time April 29, 1999.
TO AMEND TITLE 15, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON CIVIL ACTIONS, BY ADDING ARTICLE 2 SO AS TO ENACT THE YEAR 2000 COMMERCE PROTECTION ACT IN ORDER TO PROVIDE FOR THE RECOVERY OF A CLAIM FOR A PERSON WHO SUFFERS AN ECONOMIC LOSS AS A RESULT OF THE YEAR 2000 PROBLEM.
Whereas, thousands and possibly millions of computer hardware systems, software programs, semiconductors, and other digitally operated systems may not be capable of recognizing certain dates after December 31, 1999; may read dates in the Year 2000 and thereafter as if those dates represent the year 1900 or dates thereafter; and may otherwise fail to process accurately those dates or may corrupt data stored in them; and
Whereas, this situation, commonly referred to as "the Year 2000 problem", could incapacitate systems that are essential to public safety, economic health, and the delivery of goods and services in the State of South Carolina, the United States, and the world; and
Whereas, businesses engage in commence, and allocate responsibility and risk through their contractual relationships, thus providing predictability and stability in economic transactions; and
Whereas, the Year 2000 problem could result in claims of a magnitude and nature not contemplated by businesses in their contracts, which could have a negative impact on the economy of the State of South Carolina; and
Whereas, the General Assembly of South Carolina should enact the "Year 2000 Commerce Protection Act" for the purpose of maintaining the health and stability of various business enterprises located in or doing business in the State of South Carolina by encouraging the uninterrupted delivery of goods and services to the citizens of the State of South Carolina. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 15, Chapter 3 of the 1976 Code is amended by adding:
Section 15-3-210. This article may be cited as the 'Year 2000 Commerce Protection Act'.
Section 15-3-220. It is the intent of the South Carolina General Assembly that this article provide persons engaged in commerce in South Carolina, who suffer economic loss as a result of a Year 2000 problem, the opportunity to recover and be made whole for that economic loss while providing persons responsible for the Year 2000 problem a safe harbor from unlimited liability. This article is intended to be in addition to and supplement those protections offered by the federal Year 2000 Information and Readiness Disclosure Act.
Section 15-3-230. As used in this article:
(1) 'Claim' means any cause of action in state courts, federal court, or arbitration related to a Year 2000 problem.
(2) 'Contract' means any agreement for the delivery of goods or services in South Carolina, any agreement entered into in South Carolina for the delivery of goods or services, or any other agreement governed by the South Carolina Uniform Commercial Code.
(3) 'Economic loss' means any damage for breach of contract or breach of warranty recognized under South Carolina law.
(4) 'Person' means any individual, corporation, partnership, or other private entity capable under South Carolina law of entering into a contract as defined in item (2) of this section.
(5) 'Year 2000 problem' means any computing, physical, enterprise, or distribution system complication, corruption, or failure that has occurred or may occur as a result of computer hardware systems, software programs, semiconductors, or other digitally operated systems inability to process properly the change of the year from 1999 to 2000 or the leap year change. This complication, corruption, or failure may result from, but is not limited to, the common computer programming practice of using a two-digit field to represent a year, which can result in erroneous date calculations; an ambiguous interpretation of the term or field '00'; the failure to recognize 2000 as a leap year; algorithms that use '99' or '00' to activate another function; or the use of any other applications, software, or hardware that are date-sensitive.
Section 15-3-240. (A) A person in privity of contract with another person may recover only economic loss as well as reasonable attorney's fees and costs on any claims against the other as a result of a Year 2000 problem, except that recovery based upon any of the following claims is not subject to this limitation:
(1) the claim is for personal injury to an individual; or
(2) the person defending the claim has acted with fraudulent intent or reckless disregard for the truth in the formation of the contract; or
(3) a fiduciary duty recognized by law is owed by the person defending the claim to the person bringing the claim.
(B) No claim may be made under Title 39, Chapter 5, South Carolina Unfair Trade Practices Act.
(C) Any person who successfully defends a claim based on a Year 2000 problem is entitled to recover reasonable costs and attorney's fees from the person bringing the claim if the court determines that the claim is frivolous. In determining whether or not a claim is frivolous, the court shall rely on the standards of the federal courts for the imposition of those sanctions pursuant to Rule 11 of the Federal Rules of Civil Procedure as those sanctions exist as of the date of the enactment of this article.
Section 15-3-250. This article does not affect nor apply to any claim pending before approval of the act by the Governor.
Section 15-3-255. This article may not be construed to affect, abrogate, amend, or alter any enumerated rights, limitation of remedies, exclusion of damages, or any other provision of a contract.
Section 15-3-260. If any section or portion of any section of this article is held to be unenforceable or invalid by a court of competent jurisdiction, the validity and enforceability of the remaining sections or portion thereof shall not be affected by that action."
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on
Friday, June 26, 2009 at 3:01 P.M.