26th Jan 2010 17:51
26 January 2010
BSkyB wins legal action against EDS
British Sky Broadcasting (Sky) has won a five-year legal action against Electronic Data Systems (EDS) for deceit, negligent misrepresentation and breach of contract. Handing down the judgement at the Royal Courts of Justice today, Mr Justice Ramsey found that EDS had lied to Sky in order to secure a contract as part of the company's investment in a new customer relationship management system.
In summer 2000, Sky appointed EDS to design, build and implement an advanced customer service system at its customer contact centres in Livingston and Dunfermline, Scotland. The relationship was terminated in early 2002 after EDS failed to perform its contractual obligations. As a result, Sky assumed direct responsibility for systems integration and subsequently completed the project. The legal action against EDS began in 2004.
The final amount of costs and damages will be determined by the Court in due course. However, based on the judgement, Sky anticipates that EDS will be liable to pay Sky an amount of at least £200 million.
End
Further information
Media
Robert Fraser 020 7705 3706
Analysts/Investors
Francesca Pierce 020 7705 3337
Notes for editors
1) BSkyB is represented in this action by Herbert Smith and by a Counsel team led by Mark Howard QC of Brick Court Chambers.
2) Chronology
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Summer 2000 |
BSkyB selects EDS, a specialist in systems integration, to provide day-to-day management of a customer relationship management (CRM) project on its behalf. The contract was to design, build and implement an advanced customer service system at BSkyB's customer contact centres.
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March 2002 |
BSkyB terminates the relationship after EDS fails to perform its contractual obligations. Sky Subscribers Services Limited (SSSL) assumes direct responsibility for systems integration.
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August 2004 |
BSkyB begins legal action against EDS.
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March 2006 |
BSkyB successfully completes the CRM project.
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October 2007 |
Trial begins at the High Court |
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July 2008 |
Trial concludes.
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January 2010 |
Judgement is handed down by Mr Justice Ramsey. |
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