BSkyB v EDS: Massive Interim Damages

February 4, 2010

It is reported that an interim damages award has been made in the BSkyB v EDS case (more properly described as BSkyB Ltd v HP Enterprise Services UK Ltd [2010] EWHC 86 (TCC)). HP has apparently been ordered to pay BSkyB interim damages of £200m within 14 days. The order relating to interim damages by the Hon Mr Justice Ramsey was: ‘The defendant 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 that it is seeking permission to appeal against the judgment and that ‘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’.  

The size of the interim award suggests that damages will far exceed that figure and the relatively short period allowed for payment allows little time for settlement (eg in return for EDS not pursuing any appeal).  

Note that there is an opportunity to assess the impact of the case at an SCL London Group Meeting on 8 March. The meeting ‘BSkyB v EDS: when does selling become fraud? The real lessons to be learned’ has Jeremy Storey QC and Peter Messer among the speakers. SCL and Intellect members pay £29.38, non-members £47.00. If you would like to attend the meeting, please email caroline.gould@scl.org.