• EDS Loses to BSkyB in Major Technology Case
  • March 17, 2010 | Authors: Peter Brudenall; James A. Harvey; Randall S. Parks
  • Law Firms: Hunton & Williams - London Office ; Hunton & Williams - Atlanta Office ; Hunton & Williams - Richmond Office
  • In a major decision of London’s Technology and Construction Court, which will have global repercussions, technology vendor Electronic Data Systems (“EDS” -- now part of Hewlett- Packard (“HP”)) has been found liable for a deceitful misrepresentation that induced broadcaster BSkyB to enter into a contract with it. Although the case did not create any new law, it is the clearest example of an English Court finding, in the context of the outsourcing and IT services industry, that pre-contract assurances and promises can amount to deceit. This case has led to a damages award well above the agreed liability cap. On 3 February, Mr. Justice Ramsey ordered the defendants to make an interim payment on account of £200 million by 4:30 p.m. Wednesday 17 February 2010. As at the date of publication the final award is still unknown.