Out-Law / Your Daily Need-To-Know

A ruling is expected later today that could cause IT suppliers to change their sales processes. Communications giant BSkyB is suing software supplier EDS for £709 million over allegations that EDS acted dishonestly when pitching for work.

Arguments in the case closed almost 18 months ago, making it the longest decision process of any IT dispute before UK courts.

Clive Seddon and David Barker, partners with Pinsent Masons, the law firm behind OUT-LAW.COM, have said that if BSkyB is successful in its argument that misrepresentations were made fraudulently rather than negligently, then there will be no possibility of EDS relying on the contractual cap on liability.

"This outcome would mean all suppliers would need to scrutinise their sales processes, and be very careful about what is said and written in future bids," they said in September.

OUT-LAW.COM will be reporting on the judgment tomorrow.

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