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BSkyB lawsuit costs HP another £70m

Tony Collins

A judge yesterday ordered HP to pay to BSkyB a further £70m - £40m of which is interest - on top of the £200m it has already paid BSkyB after it lost a court case over a failed ERP installation.

The judge ordered HP to pay £40m in interest plus £33m in further interim damages to BSkyB within 14 days. The total of £73m was reduced by £3m once tax payable to HM Revenue and Customs was taken into account.

The judgments mean that HP has been ordered to pay BSkyB a total of £270m, which HP will seek to recover if the case goes to appeal.

The judge made no immediate decision on a request by HP's lawyers for permission to appeal. He said he would give his decision in writing.

Some lawyers expect the judge, Vivian Ramsey, who has presided over a trial lasting nine months and spent nearly 18 months compiling and writing his 468-page judgment, will turn down HP's request for appeal.

HP would then have to seek permission from the Court of Appeal to appeal the judgment.

BSkyB had claimed £700m from EDS - which was taken over by HP - over a failed ERP system. The judge upheld BSkyB's claim that EDS had fraudulently misrepresented its abilities when bidding for the contract.

At another hearing in April, lawyers are expected to argue over the amount of damages.

HP says that EDS did nothing to deceive BSkyB.

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