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Commercial dispute victory for broadcaster

Published on 27 Jan 2010 under category: legal

BSkyB is to seek damages of more than £200 million after a judgment ruling that Electronic Data Systems (EDS) made false representations to win a contract to supply and install software to run the broadcast corporation's new contact centre.

Mr Justice Ramsey handed down the 460-page ruling this week following criticism that he was taking too long to make the judgment after the ten-month hearing concluded in July 2008.

HP, which now owns EDS, said: "This is a legacy issue, dating back to the EDS business in 2000, which HP inherited when it acquired EDS in 2008. We're pleased the court dismissed the majority of the allegations made.

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

BskyB filed the suit in 2004 after claiming that EDS had misled it about the budget and length of the project.

The ruling could have serious ramifications for how sales teams pitch projects as companies are usually protected by limited liability - in this case, the liability cap of £30 million agreed between EDS and BskyB did not cover misrepresentations.

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