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BSkyB's suit against EDS ruled in its favour

BSkyB's suit against EDS ruled in its favour

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British Sky Broadcasting (Sky), the European satellite broadcaster, has won a five-year old suit against Electronic Data Systems (EDS) for deceit, negligent misrepresentation and breach of contract.

BSkyB had assigned a contract to EDS to design, build and implement an advanced customer service system at its customer contact centres in Livingston and Dunfermline, Scotland in the year 2000.

The relationship was terminated in early 2002 after EDS failed to perform its contractual obligations, says BSkyB in a press statement. With this BSkyB assumed direct responsibility for systems integration and subsequently completed the project. The legal action against EDS began in 2004.

In the judgement being passed by Mr Justice Ramsey at the Royal Courts of Justice, it has 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.

EDS was acquired by the global computing firm Hewlett-Packard (HP) in 2008. According to a report at Reuters, HP is expected appeal the ruling because the court had dismissed many of the allegations.

The Court would be determining the final amount of costs and damages in due course. “However, based on the judgement, BSkyB anticipates that EDS will be liable to pay Sky an amount of at least 200 million pounds,” says BSkyB in a released statement.

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