The High Court has ruled in the BSkyB v EDS case that EDS’ behaviour in offering Sky implementation timescales without reasonable basis for doing so involved a fraudulent misrepresentation and that EDS was also liable for negligent misrepresentation and breach of contract.
EDS had been contracted to build a £48 million customer relationship management system which Sky ended up having to build itself at a cost of £265 million.
It is debateable whether the finding will trigger an overhaul of existing sales processes – as some had anticipated – given the Court’s focus upon the conduct of one of EDS’ employees who had “demonstrated an outstanding ability to be dishonest” rather than upon any systemic failure on EDS’ part. However, the judgment, which stretches to 500 pages, stands as a caution to those involved in procurement.
Click here to read the judgment.
Click here to read a summary of the ruling.