(A) A person in privity of contract with another person may recover only economic loss as well as reasonable attorney’s fees and costs on any claims against the other as a result of a Year 2000 problem, except that recovery based upon any of the following claims is not subject to this limitation:

(1) the claim is for personal injury to an individual; or

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Terms Used In South Carolina Code 15-3-240

  • Claim: means any cause of action in state courts, federal court, or arbitration related to a Year 2000 problem. See South Carolina Code 15-3-230
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract: means any agreement for the delivery of goods or services in South Carolina, any agreement entered into in South Carolina for the delivery of goods or services, or any other agreement governed by the South Carolina Uniform Commercial Code. See South Carolina Code 15-3-230
  • Economic loss: means any damage for breach of contract or breach of warranty recognized under South Carolina law. See South Carolina Code 15-3-230
  • Fiduciary: A trustee, executor, or administrator.
  • Person: means any individual, corporation, partnership, or other private entity capable under South Carolina law of entering into a contract as defined in item (2) of this section. See South Carolina Code 15-3-230

(2) the person defending the claim has acted with fraudulent intent or reckless disregard for the truth in the formation of the contract; or

(3) a fiduciary duty recognized by law is owed by the person defending the claim to the person bringing the claim.

(B) No claim may be made under Title 39, Chapter 5, South Carolina Unfair Trade Practices Act.

(C) Any person who successfully defends a claim based on a Year 2000 problem is entitled to recover reasonable costs and attorney’s fees from the person bringing the claim if the court determines that the claim is frivolous. In determining whether or not a claim is frivolous, the court shall rely on the standards of the federal courts for the imposition of those sanctions pursuant to Rule 11 of the Federal Rules of Civil Procedure as those sanctions exist as of the date of the enactment of this article.