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18 March 2010 / Andrew Dodd , Louisa Albertini
Issue: 7409 / Categories: Features , Commercial
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False alarm?

BSkyB ruling rings alarm bells for IT suppliers. Andrew Dodd & Louisa Albertini explain why

In a landmark court ruling on 26 January 2010, a judge has ruled in favour of BSkyB in its bitterly contested £710m legal battle with EDS. Mr Justice Ramsey found that EDS had fraudulently misrepresented to BSkyB the timescales in which it could deliver a new customer relationship management (CRM) system for BSkyB.

The judgment will cause reverberations in the IT industry. In establishing fraudulent misrepresentation, BSkyB blew a hole through the £30m liability cap in its contract with EDS. Its precise damages figure will be assessed by the court in a separate hearing. Preliminary indications, however, are that it will comfortably exceed £200m.

Problems from the start

EDS successfully tendered in 2000 for the design and implementation of a new CRM system for BSkyB. The £46m project was quickly beset by difficulties. After successive renegotiations in 2001 and 2002, there was an acrimonious parting of ways in 2002. BSkyB paused for breath and consulted its lawyers.

In

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NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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