HP must pay £200m interim damages to BSkyB over failed CRM

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A High Court judge, Sir Vivian Ramsey, this afternoon ordered HP to pay BSkyB interim damages of £200m within 14 days.

No decision has been taken yet on the final amount of damages.

The payment order comes after a judgment last month which found that EDS, before it was acquired by HP, misrepresented its capabilities when bidding for, and selling, a CRM system to BSkyB.

Sir Vivian had questioned the honesty of EDS's main witness in the court case, Joe Galloway.

The judge said that Galloway had been the  "mastermind for EDS' Response to the ITT [invitation to tender] which was presented to Sky on 1 June 2000 and was closely involved in all subsequent developments".

The judge added:

"Having observed him [Galloway] over the period he gave his evidence and heard his answers to  questions put in cross-examination and by me, which have been shown to be dishonest, I also consider that this reflects upon his propensity to be dishonest whenever he sees it in his interest, in his business dealings.

"Whilst, of course, this does not prove that Joe Galloway made dishonest representations, it is a significant factor which I have to take into account in assessing whether he was dishonest in his dealings with Sky."

EDS said it dismissed Galloway as soon as it discovered he had lied to the court.

Today's order by the judge said,

"The defendant [HP,which acquired EDS] shall make an interim payment on account of the damages to which the claimants are entitled in the amount of £200m by 4.30pm on Wedneday 17 February 2010."

EDS says in response that it is seeking permission to appeal against the judgment.

A spokesman said: "This is a legacy issue dating back to the EDS business in 2000, which HP inherited when it acquired EDS in 2008. As the world's largest technology company, HP has built a solid reputation based on strong governance and adherence to the highest ethical standards."

Links:

EDS's key witness in BSkyB case had a "propensity to be dishonest" - IT Projects Blog

EDS BSkyB dispute became IT's longest and most expensive court battle - ComputerWeekly.com

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