header-logo header-logo

False alarm?

18 March 2010 / Andrew Dodd , Louisa Albertini
Issue: 7409 / Categories: Features , Commercial
printer mail-detail

BSkyB ruling rings alarm bells for IT suppliers. Andrew Dodd & Louisa Albertini explain why

In a landmark court ruling on 26 January 2010, a judge has ruled in favour of BSkyB in its bitterly contested £710m legal battle with EDS. Mr Justice Ramsey found that EDS had fraudulently misrepresented to BSkyB the timescales in which it could deliver a new customer relationship management (CRM) system for BSkyB.

The judgment will cause reverberations in the IT industry. In establishing fraudulent misrepresentation, BSkyB blew a hole through the £30m liability cap in its contract with EDS. Its precise damages figure will be assessed by the court in a separate hearing. Preliminary indications, however, are that it will comfortably exceed £200m.

Problems from the start

EDS successfully tendered in 2000 for the design and implementation of a new CRM system for BSkyB. The £46m project was quickly beset by difficulties. After successive renegotiations in 2001 and 2002, there was an acrimonious parting of ways in 2002. BSkyB paused for breath and consulted its lawyers.

In

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Weightmans—Emma Eccles & Mark Woodall

Weightmans—Emma Eccles & Mark Woodall

Firm bolsters Manchester insurance practice with double partner appointment

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Jackson Lees Group—five promotions

Private client division announces five new partners

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
back-to-top-scroll