Sky wins EDS case, HP to appeal

BSkyB has won a five-year legal action against Electronic Data Systems (EDS) after the courts ruled that the IT outsourcing firm made false representations relating to a customer service technology contract with the UK pay-TV operator.

In 2000, Sky appointed EDS, now a division of Hewlett Packard, to design, build and implement a customer service system at its customer contact centres in Livingston and Dunfermline, Scotland. Sky terminated the relationship in 2002 following claims that EDS failed to perform contractual obligations. It subsequently completed the project in-house. Sky took legal action against EDS in 2004, claiming that it had been misled about the project’s budget and time frame.

The court agreed with Sky and will determine the amount of costs and damages to be paid by EDS in due course. Sky said it anticipated it would receive at least £200m (€229m), while Hewlett Packard agreed the contract was problematic but insisted that it did not deceive Sky and would appeal the court’s decision.