Sky v EDS judgment out: IT suppliers beware
IT lawyers have been muttering about the case between BSkyB and EDS (now HP-owned) for a number of years. Finally, today the judgment is out - and initial reports (and here) suggest that it doesn't look good for EDS (though the final decision on damages will come later).
In short, EDS were contracted to provide a CRM solution to BSB in Scotland for £48m. Things went wrong. BSB terminated the contract, finished the job itself for £265m and sued EDS for damages. EDS/HP argued that a £30m liability cap applied. BSB argued that a pre-contractual misrepresentation should not be subject to the cap - and it looks as though the judge agreed. Sky are reported to say that it "anticipates that EDS will be liable to pay Sky an amount of at least £200 million".
I haven't read the judgment yet - it's apparently 468 pages long - but this should make bid teams think very carefully about what representations they make when trying to make a sale ...