IT cases are difficult and expensive to litigate.  Systems implementation cases are not black and white.  The interlocking rights and obligations of the customer and supplier mean that such cases come in various shades of grey.  That there has to be a “winner” and a “loser” in litigation does not mirror real life so settlement rates are high.   Consequently, the Technology and Construction Court judgment of Mr Justice Ramsey in the long-running BSkyB v EDS case was awaited with interest. 

The judgment was given only in January 2010 although the case finished in 2008.

The case arose out of the failure of EDS’ implementation of BSkyB’s CRM system.  Although the case involved over 500,000 documents, 70 witnesses and 110 days in Court and early commentaries tried to draw lessons from it, history may determine that it was largely decided on its particular facts.  There are some general lessons arising from BSkyB’s ability to demonstrate that EDS was deceitful in inducing BSkyB to enter into the £54 million contract and that EDS had made an actionable misrepresentation to induce it to enter into a compromise agreement after the project had failed, so that the limitation of liability clause did not bite.   There are further interesting comments on mitigation. 

What the case will also be remembered for was the way in which the Head of EDS’ CRM practice was proved to be dishonest.  Although it was not central to the case, that Joe Galloway gave extensive (and false) oral evidence to prove that his MBA from Concordia College, St Johns, US Virgin Islands in 1995 to 1996 was a “genuine” MBA, and not one obtained online, did not help EDS’ cause.  BSkyB’s Counsel applied online for a similar degree in the name of their QC’s dog, a minature schnauzer named “Lulu”.  Lulu obtained an MBA degree certificate.  The delicious twist was that the dog obtained better marks than Mr Galloway!

For more information on these issues please contact

Duncan Quinan

or your usual Lewis Silkin contact