BSkyB Reimbursed £318m by HP/EDS

HP had to finally give in and settle on paying out £318m to BSkyB in damages six months, following a UK court ruling that EDs is owned by HP had misrepresented its capabilities in delivering a CRM system.

The CRM system had been given an order in 2000 and the legal fight followed until the court's ruling that came in favor of in BSkyB's in the month of January.

A BSkyB spokesperson said that both the parties have come to jointly settled terms and the case has seen a closure.

BSkyB at first claimed to get a compensation of £700m. Mark Lewis, Partner and Head of outsourcing at law corporation, Berwin Leighton Paisner, said that the verdict in the legal sector was that the concluding amount, which was agreed upon and it was likely to be less.

But he said even if it looked at the current amount, it is still 10 times higher than the amount that EDS was responsible to pay for in the original contract.

There was a £35m cap on legal responsibility in the original agreement, but this was no longer applicable due to the deceitful misrepresentation.

He said this clearly demonstrates the importance that the suppliers should not misinform the customers, in regards to their capabilities.