EDS main witness in BSkyB case had a "propensity to be dishonest" - judge

A judge in the £709m legal case between BSkyB and EDS, which is now owned by HP, has said of Joe Galloway, the “main” witness for EDS:
“Having observed him 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 dismissed Galloway as soon as it discovered he lied in court, according to a 468-page judgment in the case, which was released this week.

In his witness statement Galloway had stated: “I hold an MBA from Concordia College, St Johns (1995 to 1996).”

The judge, Sir Vivian Ramsey, said:

“However, on being asked questions about that degree Joe Galloway gave evidence
to the court over a prolonged period which EDS fully accept, as they have to, was
completely false.

“This led to the termination of his employment by EDSC [Electronic Data Systems Corporation] and to EDS having to accept that their main witness had lied in giving his evidence.

“He was also the person who, as Managing Director of the relevant part of EDS,
directed and was fully involved in EDS’ Response to the ITT [invitation to tender] and in the various matters which are alleged by Sky to give rise to the misrepresentations in this case.”

In his judgment, Sir Vivian said that Joe Galloway was 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”.

In late 1999 EDS set up a CRM Practice within the e.solutions line of business for the
Europe, Middle East and Africa region. Galloway became Managing Director of that CRM Practice. 

He left EDS in December 2000 to form a CRM consultancy, and a number of staff from the EDS CRM Practice also joined the consultancy. He was later was employed by EDS in the US from 2006 as an IT consultant but was dismissed from that role during the course of the EDS/BSkyB trial, according to the judgment.

The judgment finds in favour of BSkyB’s allegations that EDS had made misrepresentations in selling a CRM system to BSkyB.

It’s unclear to what extent the judge was influenced by Galloway’s loss of credibility and the evidence he gave.

This is some of what the judge said about Galloway.

“… It is necessary for me to set out in more detail the way in which the evidence relating to the Concordia MBA developed.

“When he [Galloway] first gave evidence, he was asked a series of questions on Day 37. He was shown a website for Concordia College and University which he said he did not recognise.

“He said that he was in St John in the US Virgin Islands and attended Concordia College for approximately a year which involved attendance at classes. He said that he had a diploma or degree certificate and transcripts of his marks which were, in the end, produced to the Court.

“He was taken to the website for Concordia College which stated as follows:

“You may have done past courses and other learning which equals an Associate, Bachelor or Master degree but you accumulated that learning in a variety of contexts with no resulting degree outcome. Meeting your needs, Concordia College’s online prior learning assessment process may conclude with an accredited degree in 24 hours, in the subject of your prior studies. Your transcripts then credibly document all of your learning.”

“One of the pages of the website referred to some of the successful Concordia College gaduates and by clicking on a tab it showed Joe Galloway as one of those graduates. He maintained that he had not seen the website before.

“In fact, Concordia College is a website which provides on-line degrees for anyone who makes an application and pays the required fee. This was effectively and amusingly demonstrated by an application which was made on the website for an MBA degree for a dog “Lulu” belonging to Mark Howard QC [BSkyB’s QC]. 

“Without any difficulty the dog was able to obtain a degree certificate and transcripts which were in identical form to those later produced by Joe Galloway but with marks which, in fact, were better than those given to him.

“In addition, a recommendation letter was provided to Mr Galloway and the dog by a person who purported to be President and Vice-Chancellor of Concordia College and University …”

“… Whilst the underlying lie was that Joe Galloway had quite evidently obtained a fake degree from the Concordia Collage website, he then gave evidence … which was palpably dishonest both in answer to questions in cross-examination and also in answer to questions from the Court.

“In that evidence he maintained that he had not purchased his MBA degree online. Rather he said that he had in fact attended classes at a building used by Concordia College at St John over the period 1994 or 1995 to 1996, studying to obtain the degree.

“He said that he attended Concordia College whilst he was employed by BSG/Alliance IT working on a project on St John for Coca Cola, which required him to be based for the majority of his time on St John. He said that he travelled to and from St John by plane, flying into and out of the island.

“He explained that when he attended Concordia College ‘there were a number of buildings that I went to. I can remember three distinct buildings that we went to. Block, office block buildings in and around the locations of the commercial area that I was working in for Coca Cola.’

“He said he attended between 5 and 10 classes, which were ‘across multiple days. Multiple weeks, multiple months’.

“He said that they were ‘once a week for three hours’ across a term. Later he said in answer to a question from the Court: ‘an average programme would be one three-hour class per night per course. So if, for example, in one semester block, I would have three courses, I would have three nights each with one three-hour class per week. So for example, Monday, I might go for three hours, Wednesday I might go for three hours and Thursday, I might go for three hours.’

He said that there were ‘exams at the end of each class’ and that some class sizes ‘were five people, some class sizes were eight to ten’ but he did not ask anybody their name.

“He explained that he was working on St John on a project for Coca Cola and said ‘it was a long project. We were there a total of 15 months, but I would be there for a time and then go away and then come back. Sometimes the gap would be a week, and sometimes the gap would be up to about three weeks, especially in the holiday period.’

“He said that he was living in “a hotel environment.” He said that he ‘was working with a number of independent Coca Cola Distributors that were in the area’ and that whilst there was no Coca Cola bottling plant or anything of the nature there but there was a Coca Cola office which was clearly described as a Coca Cola facility with ‘Coca Cola marketing, advertising materials around.’

“In relation to travelling to St John he said: ‘As I recall, there was a small commuter flight that went back and forth to St Johns.’ and which went ‘From St Thomas which is the largest island to St John.’ He said that it was a “Four – six seater kind of airplane”.

“After he had been told there was no airport on St John and that St Thomas was two kilometres away he was later asked whether he maintained that he flew on to St John and he replied ‘As I said before, I don’t recall specifically.’

“He said that he could provide ‘the graduate materials that I worked on, the work books, the books, that sort of thing. I am happy to pass those along to you.’ He said that would be ‘somewhere between five and ten textbooks’, which were ‘books that are associated with the class’.

“When he did provide a book, EDS’ solicitors said that Joe Galloway ‘recalls having this for some time but cannot recall whether he used this as part of any of his studies’.

“That book was “The Customer Connection” by John Guaspari and bore a barcode, stickers and pencil markings which linked it with the library of the St Charles, Missouri campus of Sanford-Brown College near his current home in St Louis, Missouri and evidently was a recent acquisition.

“In fact, as I have said, Sky produced two witness statements from David Phillips, a solicitor from Herbert Smith LLP who visited the US Virgin Islands during the trial and a witness statement from Senator Liston Davis, a US Virgin Islands senator, a former Superintendent of Schools, Commissioner of Education and member of the Board of Education in the US Virgin Islands and the current Chairman of the US Virgin Islands Legislative Committee on Education, Culture and Youth.

“This evidence, which was not challenged, showed that there was not and never had been a Concordia College & University on St John; there was not, nor ever had been a Coca Cola office or facility on St John; there was not, nor ever had been an airport on St John and it was not possible to fly onto the island.

“The closest island, St Thomas, is about two kilometres away.

“Sky submit that, as a result, Joe Galloway revealed himself in his evidence to be a person with a wholesale disregard for the truth, entirely willing to lie and to make things up in order to suit his needs.

“They say that he revealed himself as a man who could lie without any palpable change in his disposition or any outward signs of unease and that he repeatedly perjured himself, deliberately and knowingly seeking to mislead the Court. Sky submit that, overall, the Court cannot but come to the conclusion that Joe Galloway’s evidence as a whole is a complete lie.

“EDS accept that Joe Galloway lied to the court in relation to his MBA and he has been dismissed from his employment by EDSC as a result.

“EDS submit that it does not follow that all his evidence was false… EDS submit that, Joe Galloway’s evidence on the relevant issues was credible and he did not try to gloss the facts in favour of EDS.

“EDS accept, though, that in the light of his evidence concerning his MBA degree, Joe Galloway’s evidence on other matters had to be treated with caution.

“They accept that the court will not be as reluctant as it normally would be to accept that he is wrong or even knowingly wrong in his evidence on other matters.

“However they submit that his evidence should, nevertheless, be accepted where it is supported by other evidence or appears inherently likely and indeed it should be accepted unless there is an objective reason to reject it.

“They say that … the Court should guard against merely concluding on the basis of the evidence that Joe Galloway was dishonest in relation to his degree that he was also dishonest in relation to the making of representations to Sky in relation to the bid unless there is other cogent evidence to support that conclusion.

“This is not a case where there was merely a lie as to the MBA degree. Such a lie might have had a limited effect on credibility and might be explicable on the basis that Joe Galloway wished to bolster his academic qualifications and was embarrassed about the way he did it.

However his dishonesty did not stop at that.

“He then gave perjured evidence about the MBA, including repeatedly giving dishonest answers about the circumstances in which he gained his MBA and worked in St John on a project for Coca Cola. In doing so, he gave his evidence with the same confident manner which he adopted in relation to his other evidence about his involvement in the Sky CRM Project.

“He therefore demonstrated an astounding ability to be dishonest, making up a whole story about being in St John, working there and studying at Concordia College. EDS properly distance themselves from his evidence and realistically accept that his evidence should be treated with caution.

“In my judgment, Joe Galloway’s credibility was completely destroyed by his perjured evidence over a prolonged period. It is simply not possible to distinguish between evidence which he gave on this aspect and on other aspects of the case.

“My general approach to his evidence has therefore to be that I cannot rely on the truth of his evidence unless it is supported by other evidence or there is some other reason to accept it, such as it being inherently liable to be true.

“Having observed him 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 accept that Joe Galloway lied to the court in relation to his MBA and he has been dismissed from his employment by EDSC as a result.

“EDS submitted that it does not follow that all his evidence was false.”


HP says it will seek permission to launch an appeal.

During the hearings, EDS denied the allegations of fraudulent misrepresentation, and attributed the project cost and time overruns to the undefined scope of BSkyB’s requirements.

EDS’s QC Mark Barnes said during the dispute, “The main problem with this project was that it was wholly unspecified. Sky knew that it wanted a super-dooper CRM system, but had little more idea of what it wanted or needed.”

HP said in a statement after the judgment:

 “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.”

Lawyers believe that some of the main findings of the judge could set precedents even if the case goes to appeal.

Rob McCallough, partner at Pinsent Masons’ outsourcing technology and communications group, said it could be a “landmark decision”, which could give rise to suppliers reviewing sales techniques and what is presented to customers in terms of their capabilities, products and services.”

My comment:

EDS had about 60 people in the original bid team and 27 witnesses gave evidence at the trial. Could one man alone have had an enormous influence over the bid and the evidence at the trial?


Court rules in favour of BSkyB in £700m legal case – ComputerWeekly.com

EDS witness “lied” – ComputerWeekly.com

BSkyB would have hired PwC if EDS had not made misrepresentations – ComputerWeekly.com