Herbies and Brick Court seal victory in long-awaited BSkyB judgment
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Herbert Smith and Brick Court’s Mark Howard QC have won a major victory in the Technology and Construction Court for British Sky Broadcasting (BSkyB).
BSkyB will seek damages of more than £200m from Electronic Data Systems (EDS) after Mr Justice Ramsey handed down a 460-page judgment ruling that EDS had made misrepresentations to win a contract to supply and install software to run BSkyB’s new contact centre.
EDS, which has since been acquired by technology giant HP, was represented by DLA Piper partner Matthew Saunders, who instructed One Essex Court’s Mark Barnes QC.
In a statement released today the company said it would appeal the decision.
The case concluded in July 2008 after a 10-month hearing with legal costs of more than £70m amassed on both sides. Last year The Lawyer reported that Ramsey J had come in for criticism for the length of time he was taking to hand down his judgment (26 October 2009).
Today’s ruling will have major legal ramifications because it means that despite both parties agreeing a liability limit when the disputed contract was signed, EDS will now effectively be landed with unlimited liabilities.
In a statement HP 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.”
Counsel
British Sky Broadcasting: Herbert Smith partner Ted Greeno instructed Brick Court’s Mark Howard QC and Alex Charlton QC and Matthew Lavy of 4 Pump Court.
Electronic Data Systems: DLA Piper partner Matthew Saunders instructed One Essex Court’s Mark Barnes QC (now retired), who led Alan Gourgey QC and Stephen Tudway of 11 Stone Buildings and One Essex Court’s Zoe O’Sullivan.
Readers' comments (1)
Anonymous | 27-Jan-2010 8:56 am
This was a long awaited decision and one that reflects the enormous difficulties in proving misrep. The liability was capped at £30m and it is astonishing how BSkyB managed to get round this by proving deceit (somehow I am not convinced). I think an appeal is likely to be allowed (and likely to lead to a different judgement) as BskyB lost most of the legal arguments according to other reports. Completing the contract themselves at a staggering £275m and then claiming it back from EDS seems ludricous and wouldn't wash in the norm. I think the length of time that it took to reach judgment proves that there is a lot to look at here.
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