BSkyB spends another £1m on EDS legal fees

BSkyB spent £1 million on legal fees relating to a large court case it won against EDS, in a year when there were hardly any days in court and the case was settled.

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BSkyB spent £1 million on legal fees relating to a large court case it won against EDS, in a year when there were hardly any days in court and the case was settled.

The broadcaster spent the legal costs in the 12 months to 30 June, following on from £3 million the year before when there were also barely any days in front the judge.

The costs relate to a £709 million lawsuit over a failed customer system implementation by EDS, now owned by HP. The parties fell out in 2002 as the implementation began to falter, and BSkyB took over the work.

During the period when the £1 million was spent, on 26 January 2010 a judgement was finally issued, and it was in BSkyB’s favour. This came some two years, and four months, after the first hearing, and 18 months after the case had its last day of hearings.

Money was then spent as BSkyB and EDS argued extensively over costs owable to BSkyB, as well as interest and tax, and the parties awaited judgements on damages. The judge awarded a total of £270 million against EDS by March, with rumours that more was to be awarded.

On 7 June, three weeks before the close of this financial year for BSkyB and after seven years of legal wrangling, the two parties finally negotiated a settlement, leaving EDS paying the broadcaster £318 million. BSkyB indicated today that the £318 million comprised £269 million in damages and £49 million in interest.

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