BSkyB wins high court ruling against Hewlett Packard

Computer giant Hewlett Packard is liable to BSkyB over a troubled multimillion-pound data package, a high court judge ruled today. The broadcaster hired Electronic Data Systems, later taken over by Hewlett Packard, in 2000 to build a new customer services system. The contract was ended in March 2002 after a "woeful" performance, the court heard. Sky was originally seeking £709m in compensation from the data provider over the £48m contract. But there will be a further hearing over damages in February after Sky's lawyers have examined the judgment. Mr Justice Ramsey said today: "I find that there was liability on the first defendant [Hewlett Packard] to the claimant [BSkyB] for fraudulent misrepresentation giving rise to damages." Lawyers for Sky told the judge the project eventually took six years to complete and if the contractor had been honest about its abilities, BSkyB would have chosen a different company. A spokesman for Hewlett Packard said of the ruling: "This is a legacy issue, dating back to the EDS business in 2000, which HP inherited when it acquired EDS in 2008. "We are pleased the court dismissed the majority of the allegations made. While we accept that the contract was problematic, HP strongly maintains EDS did nothing to deceive BSkyB. HP will be seeking permission to appeal." BSkyB said it believed EDS would be liable for at least £200m in costs and damages to the group. The broadcaster said in a statement: "The final amount of costs and damages will be determined by the court in due course. "However, based on the judgment, Sky anticipates that EDS will be liable to pay Sky an amount of at least £200m." • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".