EDS loses vital court case against BSkyB

 

Verdict could force vendors to be more honest.

In a landmark legal ruling, IT services firm EDS has lost its ongoing case with broadcaster BSkyB after the British High Court ruled that the HP-owned company had lied about its expertise.

The court ruled that EDS has misled BSkyB over its skills and that the contract and a clause limiting EDS’ potential damages to US$30 million were invalid. The ruling would leave EDS liable to at least £200m (AU$357 million) in damages.

"It's probably the decision that service providers have been dreading," Alan Owens, a litigation partner at Morrison & Foerster told the Wall Street Journal.

"We can expect a drastic change in behaviour among sales teams bidding for major contracts."

The saga began in 2000 when EDS won a £48m (AU$85m) contract to build a CRM system for BSkyB’s operations in Scotland. The project was beset with problems and cost overruns and in the end BSkyB sacked EDS and finished the project themselves, at a cost of £265m (AU473m).

BSkyB said that EDS had misrepresented its skills and if it had known this it would have gone with an alternative bid from PricewaterhouseCoopers.

"We are pleased the Court dismissed the majority of the allegations made," an HP spokesman said in a statement.

"While we accept that the contract was problematic, HP strongly maintains EDS did nothing to deceive BSkyB. HP will be seeking permission to appeal."

Copyright ©v3.co.uk


EDS loses vital court case against BSkyB
 
 
 
Top Stories
Beyond ACORN: Cracking the infosec skills nut
[Blog post] Could the Government's cybercrime focus be a catalyst for change?
 
The iTnews Benchmark Awards
Meet the best of the best.
 
Telstra hands over copper, HFC in new $11bn NBN deal
Value of 2011 deal remains intact.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  39%
 
Your insurance company
  3%
 
A technology company (Google, Facebook et al)
  8%
 
Your telco, ISP or utility
  7%
 
A retailer (Coles, Woolworths et al)
  2%
 
A Federal Government agency (ATO, Centrelink etc)
  20%
 
An Australian law enforcement agency (AFP, ASIO et al)
  14%
 
A State Government agency (Health dept, etc)
  6%
TOTAL VOTES: 1798

Vote
Do you support the abolition of the Office of the Information Commissioner?