A Review of Alan M. Gahtan, The Year 2000
Computer Crisis Legal Guide
Alan M. Gahtan, The Year 2000 Computer Crisis Legal Guide.
Toronto: Carswell, 1998. Pp. 269.
[Soft cover $50.00 (Cdn.)].
Reviewed by Sunny Handa”
Introduction
The year 2000 (“Y2K”) problem (also known as the millennium bug) illustrates
the dependence we, as a modem society, place on computer systems. The Y2K prob-
lem, which has gained a lot of press over the past two years, is a data-related com-
puter processing problem that will disrupt computer systems and cause adverse eco-
nomic consequences. The magnitude of these effects, however, is a matter of much
debate. Businesses, governments, and other organizations are busily preparing them-
selves for possible Y2K effects, both from their own information systems and as a re-
sult of their linkages with other organizations (i.e., suppliers and customers). Al-
though the computer industry has known about the Y2K problem for many years, lit-
tle was done in terms of bringing it to management’s attention until the threat of legal
action began to crystallize. Computer software and hardware developers, as well as
any organizations using products that potentially may be plagued by a Y2K problem,
are all possible defendants in Y2K lawsuits. The legal complexities associated with
the Y2K problem should not be underestimated. They range from issues of contract,
tort, financial reporting, corporate governance, regulatory oversight, copyright, em-
ployment, and general corporate law issues. Alan M. Gahtan’s The Year 2000 Com-
puter Crisis Legal Guide’ attempts to navigate through these complex issues.
. Doctor of Laws. Barrister and solicitor of the Ontario Bar. Counsel to the law firm of Martineau
Walker. Adjunct Professor of Law (McGill University, Montreal, Canada).
‘(Toronto: Carswell, 1998).
McGill Law Journal 1999
Revue de droit de McGill 1999
To be cited as: (1999) 44 McGill L.. 795
Mode de r6f&ence : (1999) 44 R.D. McGill 795
MCGILL LAW JOURNAL / REVUE DE DROIT DE MCGILL
[Vol. 44
I. The Year 2000 Problem
A. What is the Y2K Problem?
For many years, large data processing systems were programmed using only a
two-digit, year-date field. This was done to save on both storage and processing costs.
The difficulty with using a two-digit field is that when the calendar changes from the
year 1999 to the year 2000, the two-digit field will change from the year 99 to to the
year 00. Zeroes and computers (which “understand” mathematics), in a nutshell, do
not get along. It is expected that when the date changes to the year 2000, many com-
puter systems, regardless of their function, will crash or experience data processing
problems. While this sounds like science fiction, it is a serious business problem that
is expected to result in global economic losses in the billions, and possibly even in the
trillions of dollars. It will also likely result in the failure of some companies. Other
critical dates will result in processing errors, including February 29, 2000.
B. The Size of the Problem
The size of the Y2K problem should not be underestimated. According to a 1997
statement by the United States General Accounting Office (Accounting and Informa-
tion Management Division): “Time is running out. Renovation work should be done
by mid-1998 to allow sufficient time for validation and implementation. … [Organiza-
tions] must act quickly to complete the assessment phase and begin to renovate their
mission-critical systems now. ‘ We are well past the mid-1998 date and many busi-
nesses (and individuals) are still ignoring the Y2K problem.
Recent newspaper accounts indicate that the United States federal government is
spending upwards of $US 3.8 billion in order to rectify this problem. A 1997 Fortune
500 survey revealed that only 16% of Fortune 500 companies were Y2K compliant.
Closer to home, Bell Canada announced that it has set aside just over $CDN 500 mil-
lion to correct the Y2K problem. Many experts believe that these amounts will not be
enough. To fix the problem, it is estimated that $300 to $600 billion will be spent re-
writing in excess of 250 billion lines of computer code.”
Why is the Y2K problem expected to cost so much? First, time is running out.
Identifying the problem from a technical perspective is one measure of cost. Finding
programmers who can fix the problem, and professionals who can structure a solution
2 United States General Accounting Office, Year 2000 Computing Crisis: An Assessment Guide at 6,
(date ac-
online: Compaq
cessed: 18 August 1999).
‘BCE
1997annual/> (date accessed: 18 August 1999).
Inc., 1997 Annual Report at 36, online: BCE
