The Arizona Legislature passed important Y2K legislation during the last legislative session. The new law signed by Governor Hull on April 26, 1999 is effective immediately because the bill contained an emergency clause.
The law provides that prospective claimants for Y2K date failures must provide written notice to a prospective defendant at least 90 days before commencing an action on the existence of a claim. If the prospective plaintiff fails to provide such written notice, the new law requires the court to dismiss the claim when it is later brought in litigation.
Under the statute, defendants receiving notice from prospective claimants have 60 days to request in writing an opportunity to inspect the subject product, equipment or service to assess the nature, scope and consequences of the Y2K problems. The inspection can occur only if the product, equipment or service remains in the prospective plaintiff's possession or control. Within 90 days of the inspection, the prospective defendant may offer to cure the Y2K problem, including an offer to repair, replace, upgrade or make restitution for the failure. Both the inspection and the offer to cure by a prospective defendant may be considered in evidence in any subsequent litigation.
The new state law also provides several affirmative defenses in connection with Y2K litigation and protections against remedial measures used as evidence of negligence or fault. Key affirmative defenses include the defendant notifying the buyer in advance of a possible Y2K problem and the defendant relying on a vendor's promises or warranties.
Given the passage of this new law, claimants who have suffered Y2K problems should comply with the notice provisions in the statute, and prospective defendants should be careful to take full advantage of the available affirmative defenses.
If you would like to receive copies of this statute, please contact the author at 263-1700 or via e-mail at blacorte@jshfirm.com