On May 20, 1999, Texas Governor George W. Bush signed Senate Bill 598 into law. The bill creates certain limits on Year 2000 (Y2K) litigation.

SB 598 becomes effective September 1, 1999, and applies to all civil actions within its scope that are commenced on or after that date. The bill adds a new Chapter 147 to the Texas Civil Practice & Remedies Code and makes related technical amendments to Chapters 101 and 108 of that code. The most important provisions of Chapter 147 fall into three categories: (1) a 60-day notice of claim and cooling-off period, during which formal litigation cannot go forward; (2) several affirmative defenses to Y2K claims; and (3) various limits on recoverable damages. Before we examine the main provisions of the new law, it is important to note what it covers.

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