The Co-operative Group is considering making a compensation
claim of up to £1m against the courts, after mistakes by a judge
forced it to take an £11m claim against supplier Fujitsu Services
to a retrial.
The Co-op has approached lawyers representing Fujitsu Services to
suggest that the firms collaborate to recover the costs of a
five-week trial that appeal court judges ruled had been mishandled
by a senior technology judge.
Nick Eyre, group secretary of the Co-op, which went to appeal after
losing to Fujitsu in the first round, said,"We have both been the
victims of unfairness in the process. We have both incurred
significant costs yet need to start the process again. We are
considering our position vis a vis the Lord Chancellors
Department."
Fujitsu declined to comment.
The dispute centres on a point of sale project to underpin the
merger of two rival Co-op firms into a chain of 1,100 stores. The
combined legal costs of the case are estimated to be more than £3m.
Lawyers for the Co-op are investigating the legal precedents and
are considering a claim under the Human Rights Act, which
guarantees the right of a fair trail.
The case aroused controversy after original trial judge Richard
Seymour accused Co-op IT staff of lying in court to support their
case. That claim was questioned by the appeal court, which ruled
that the judge's "objective vision" had been distorted.
The Co-op's proposals are likely to raise further questions about
the effectiveness of the Technology and Construction Court.
The court, formed in 1998, employs specialist judges with IT
experience to handle complex technical and contractual cases.
Dai Davis, IT lawyer at Nabarro Nathanson, said, "The court has
been subject of severe criticism about whether it has the requisite
skills. The Co-op case has opened up a debate as to whether it is
up to the job."
Davis said a claim from the Co-op would be met with stiff
resistance from the legal authorities because judges would want to
avoid opening the flood gates for other compensation claims.
News of the Co-op's plans emerged after the House of Lords turned
down a petition from Fujitsu to appeal against the retrial on the
grounds that it would raise no matters of general public
importance.