Capital Briefs: More Talks on Bill to Limit Y2K Liability

House and Senate conferees are to resume negotiations today on a bill to limit liability for year-2000 errors.

Talks broke down last Thursday. Supporters argue that the bill would protect high-tech and other firms from unreasonable legal costs. Opponents claim it would prohibit consumers, including businesses, from seeking redress for faulty products or services.

President Clinton, who opposes broad restrictions on year-2000 litigation, has threatened to veto both the House bill and the less restrictive Senate bill. Conference committee members are trying to bridge the difference between the Senate bill and the White House's preferred language.

The conference committee is also addressing an obscure provision in the Senate-passed bill that bank regulators contend could destabilize both banks and the economy.

The provision would prohibit banks and other creditors from taking "adverse action"-such as foreclosing on a mortgage-against a person or business that failed to meet contractual obligations due to a year-2000 problem.