Let The Lawsuits Begin! Lawsuit could set crucial Y2K precedent


Fully vaccinated are you?
From InfoWorld:

September 7, 1998

Lawsuit could set crucial Y2K precedent

Question of when vendor should warn users of Y2K problems at stake By Blaise Zerega

By asking a Massachusetts State Superior Court for a declaratory judgment against retailer J. Baker Inc., Andersen Consulting fired the first salvo in what many lawyers say will be a full-scale war between vendors and companies over the year-2000 problem. This case may either intimidate companies from suing vendors, or it may trigger a barrage of similar lawsuits.

"It has broader implications of how consulting firms are approaching [year-2000 litigation]," said Scott Nathan, a partner at Nathan & Voltz, a law firm in Franklin, Mass. "Arguably, there are hardware and software vendors watching this."

The case revolves around $3 million that retailer J. Baker spent to make a mainframe-based merchandising system, which was installed by Andersen between the years 1989 to 1991, year-2000 compliant. According to legal documents, Andersen asked the court to rule that it had fulfilled its contractual obligations and that it is not responsible for upgrading the system.

"If any other organization was placed in our shoes, it is so overwhelmingly in our favor, that not to take this action would raise eyebrows," said Eric Jackson, a representative for Andersen Consulting, in New York.

Whether Canton, Mass.-based J. Baker, which could not be reached for comment, will countersue for the monetary damages is unclear.

Attorneys and analysts questioned the wisdom of Andersen dragging a customer into court from a public relations point of view, but said that the legal precedent it sets may be worthwhile.

"This is a calculated decision by Andersen Consulting to put what they perceive to be a marginal case into the system," Nathan said. "They're sending a message to those companies who are thinking of suing them."

Andersen, however, denied that its action was undertaken to ward off other litigation.

"We're taking this action to specifically deal with the J. Baker situation," Jackson said.

Analysts said that this case may be the beginning of the onslaught of year-2000 lawsuits.

"This could be a watershed event in [year-2000] litigation. In the event that J. Baker does win, the floodgates will open," said Kazim Isfahani, an analyst at Giga Information Group, in Cambridge, Mass.

Sources close to the case who asked to remain anonymous, said Andersen's strategy was that first, by filing this declaratory judgment, other companies would take notice of the seriousness with which the consultancy intends to litigate claims. And second, an out-of-court settlement would deny the possibility of publicity and jury settlement should the case be decided in J. Baker's favor, sources said.

Some attorneys and industry watchers, however, would like to see the case go to trial in order to help define a "standard of care" regarding how much year-2000 information vendors must disclose.

"There's a real question in 1989 whether the standard of care would have contemplated year-2000 compliance," said Jim Kalyvas, a partner at Foley & Lardner, in Los Angeles.

Analysts suggest 1995 as a pivot date for this standard of care.
Elsmar Forum Sponsor

barb butrym

Quite Involved in Discussions
absolutely, Marc....design life will be the key factor. This is just one of many many more to come..and with fiscal year 2000, it will even hit sooner than most people expect!!!! This has got to be the best case of "opps" in business today. The government is one of biggest problems. Not very much attention...in relation to the impact..is being paid to the trickle down effects, and their potential litigations. I have to admit until a year ago I was not paying much attention either until I had my eyes opened by am IT consultant I met from New Zealand. What happens when your line goes down because your supplier's MRP system misses the mark due to date confusions..and you miss your contract deadline and your customer cancels...who pays? Just one very simple scenario...but oh so possible...especially with JIT so prevelant.

barb butrym

Quite Involved in Discussions
Hey ya know what else???????? all those consultants out there making their millions on the fix? Who is guaranteeing the impact analysis? NO-ONE..Who is watching the cookie jar? NO-ONE....Who among them have a quality system to prevent "opps"? NO-ONE..who among them make you sign a 'not responsible' statement? probably all of them......what a racket....Where are the quality system people? Who audits their work?...damn ... anothe opportunity missed !!!!


Fully vaccinated are you?
I thought the article was interesting but I wonder. If it was 1988 (for my point) spending probably hundreds of thousande (if not millions) of dollars and the company (Anderson in this case) was putting together a software solution estimated with a 'life' of 10 to 15 years, year 2000 issues, even though it was 1988, should have been foreseen and addressed.

I'm wondering if the 'designed life' of the software will be a floating decision factor in litigation.
Thread starter Similar threads Forum Replies Date
ScottK Let's Catch Up... what's happened to you since last June Coffee Break and Water Cooler Discussions 24
E Contacting FDA via phone to let them know a Submission is Imminent Other US Medical Device Regulations 6
W Let's play... Classify My Medical Device!!! EU Medical Device Regulations 15
S Is it alright to let the supplier do all measurements and inspection? Quality Manager and Management Related Issues 10
J How many Major Nonconformances could let the Audit be Terminated? General Auditing Discussions 9
T Let's share ideas about an inspection problem.... Inspection, Prints (Drawings), Testing, Sampling and Related Topics 6
Z Let us Discuss ISO 9001's Tomorrow ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 1
N TL 9000 Starter - Please let me know if anyone has worked on TL 9000 Software Quality Assurance 1
L It is fair and legal to let a customer to make an assessment audit based on other cus IATF 16949 - Automotive Quality Systems Standard 2
Hershal Congrats! Let's talk about top posters in the threads General Measurement Device and Calibration Topics 17
R Quality Management System not active for 6 months. Registration let it Lapse or Fail? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 9
R The Improvement in Sigma Level (from Let's fix six sigma) Six Sigma 4
T Let's fix Six Sigma! Six Sigma 197
S How do you let customers know you are certified on your literature? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 7
Q How to write my CV if I was let go? Career and Occupation Discussions 11
A Quality Policy - Please let me know your opinions and comments ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 11
tony s Let the Registrar audit the Internal Audit process Internal Auditing 45
Claes Gefvenberg Let's do age! How 'Old' will you be in 2007? A poll - Version 3 Coffee Break and Water Cooler Discussions 91
K What do you expect from a new position? Let?s compare benefits Career and Occupation Discussions 18
Hershal Football! (OK, we will even let soccer come in) - Fall 2006 Coffee Break and Water Cooler Discussions 162
H Benchmarks for Plastic Injection Molding - Let's Share! Benchmarking 18
Hershal MEMORIAL DAY 2007 - Let it be heard Coffee Break and Water Cooler Discussions 18
W Useful PC software utilities let's share some info? After Work and Weekend Discussion Topics 20
Jim Wynne A Modest Proposal: Let's Get Rid of "Quality." Philosophy, Gurus, Innovation and Evolution 15
Douglas E. Purdy 7.5.2 e) Revalidation - Let me run this by you for verification ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 7
Steve Prevette Let's nominate a Cove'r for ASQ Board! ASQ, ANAB, UKAS, IAF, IRCA, Exemplar Global and Related Organizations 13
Q And now, let's add software development - Medical Devices - Applying ISO9001:2000 ISO 13485:2016 - Medical Device Quality Management Systems 12
E The Chit Chat and 'Let's Meet' Thread - Meeting Other Elsmar Cove Participants Coffee Break and Water Cooler Discussions 186
E Let's do age! How 'Old' are you? A poll - Version 2 Coffee Break and Water Cooler Discussions 223
Marc Registrar Lawsuits? Troubles at ABS-QE - Auditor Qualifications Registrars and Notified Bodies 1
Watchcat When to begin putting together postmarket production QMS for a mobile app? 21 CFR Part 820 - US FDA Quality System Regulations (QSR) 13
G New to ISO 9001 - Where to begin? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 17
W Where to begin with an ISO 9001:2015 internal audit Internal Auditing 13
supadrai Forced into Regulatory Affairs Role - Where do I begin? Career and Occupation Discussions 4
julsbear When will registrars begin audits for IATF 16949:2016? IATF 16949 - Automotive Quality Systems Standard 12
C ISO Auditor Trainee - How do I begin? Career and Occupation Discussions 4
F Where does Contact begin for Biocompatability? EU Medical Device Regulations 5
B How to begin tracking FPY (First Pass Yield) and "Downtime" tracking Manufacturing and Related Processes 3
J Where to begin to move our company towards ISO 9001 certification ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 9
J What point does the Accreditation begin in the process? ISO 17025 ISO 17025 related Discussions 6
C 8D for Dummies - How do I begin using the 8D approach to Corrective Action? Problem Solving, Root Cause Fault and Failure Analysis 2
B Is it normal for a procedure to begin with a conditional directive? (if statement) Document Control Systems, Procedures, Forms and Templates 30
N Where to begin defining and monitoring Quality Metrics in a Machine Shop Manufacturing and Related Processes 9
N The Gap Analysis is complete - From which clause do I begin? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 7
J Risk Management - Where to begin? AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 21
T Implementing a Kaizen Team - Where Should I begin? Lean in Manufacturing and Service Industries 7
GStough Risk Management Has to Begin Prior to Design Input, But... Design and Development of Products and Processes 10
R MSA (Measurement Systems Analysis) - Where to begin when setting up a system? Gage R&R (GR&R) and MSA (Measurement Systems Analysis) 14
C How to become an ISO Consultant and How do I begin? Consultants and Consulting 5
B How do I begin implementing HACCP? Flexible food packaging Food Safety - ISO 22000, HACCP (21 CFR 120) 3

Similar threads

Top Bottom