Limitation and exclusion of liability in a long-term IT contract
The DVLA entered into an agreement with PWC for the provision of IT consultancy services in 2002. PWC in turn entered into a subcontract with Fujitsu. IBM acquired PWC’s consultancy business and replaced PWC as party to the main contract and the subcontract.
Fujitsu brought proceedings against IBM, claiming that IBM had breached the subcontract including obligations of fiduciary duty and good faith, alleging that IBM had failed to allocate work to it as required by the subcontract and that it had failed to implement the contractual change control procedures. Fujitsu claimed that as a result it had lost revenue of approximately £36.8m. IBM denied breach and the existence of fiduciary and good-faith duties and also relied upon an exclusion clause that purported to exclude all of its liability for loss of profit/revenue in the event of breach.
Given that the effect of the exclusion clause would be to eliminate a significant element of Fujitsu’s claim for damages, the court decided to deal with this point and certain other issues on a preliminary basis at an early stage of the proceedings…
Click on the link below to read the rest of the Walker Morris briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Looking at barriers to the development of effective cross-border e-commerce in the EU.
Which? has lodged a super-complaint in relation to concerns about misleading and unclear pricing practices in the groceries sector.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.