Xerox Corp.’s claim against its insurer for coverage of some $180 million it has spent over the past three years to correct Y2K-related computer programming deficiencies is not subject to the new federal law requiring a cooling-off period before litigation can proceed, a state judge in Manhattan has ruled.

Nor will the litigation in New York be deferred to allow Xerox’s suit against American Guarantee and Liability Insurance Co. to proceed in Connecticut’s Superior Court, Justice Charles E. Ramos declared in American Guarantee and Liability Insurance Co. v. Xerox Corp., filed last week in Supreme Court, New York County, IA Part 53.

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