Final settlement of Sky v EDS – £318m to Sky

Following the High Court’s ruling in favour of Sky in January this year, it has been reported that Sky has now reached a settlement with EDS/HP in relation to Sky’s long-running claim against EDS for a failed IT implementation. Under the terms of the settlement, HP will pay to Sky £318m in damages, costs and interest.

That figure is just over ten times the general cap on liability that EDS had negotiated under the contract (although much less than the £700m that Sky originally sought). As Douglas has previously blogged, that cap didn’t apply once the court found that one of EDS’ employees had made fraudulent misrepresentations to Sky during the course of contract negotiations.

For more analysis of the High Court’s decision, and what it means for IT projects in the future, see Douglas’s summary.

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