-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
1/12
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
2/12
BSkyB v EDS
Presentation to SCL8 March 2010
Jeremy Storey QC
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
3/12
Key Dates
June 2000: EDS Presentation, Response to ITT, Bid
July 2000: EDS selected, Work began
9 August 2000: Letter of Intent signed (binding)
30 November 2000: Prime Contract signed (Timeand Materials)
16 July 2001: Letter of Agreement (compromise)
31 July 2001: Contractual date for Live in One Hall
6 March 2002: EDs removed as SI and Sky took over
26 March 2002: Memorandum of Understanding(non-binding)
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
4/12
Summary of Claims
Damages for deceit (alternatively negligentmisrepresentation) inducing Sky to select EDS andsubsequently enter into the Letter of Intent (August2000) and Prime Contract (November 2000)
Damages for negligent misrepresentation inducingSky to enter into the Letter of Agreement (July 2001)
Damages for Breach of Contract
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
5/12
Deceit The Representation Proved
EDS represented:that they had carried out a properanalysis of the amount of elapsed time needed tocomplete the initial delivery and go live of thecontact centre.
EDS represented: that they held the opinion that,and had reasonable grounds for holding the opinionthat, they could and would deliver the project withinthe timescales referred to in the Response and
subsequently the Contract.
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
6/12
What the Judge Found EDSCaveats
The ITT Response was based on what it knew at thetime
The plan was high level and would be refined afterfurther analysis
Project planning was on-going and timescales wereindicative
Events between ITT Response and Contract madeprevious representations immaterial
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
7/12
What the Judge Found - Estimating
Four stages of estimating:Scope: What work has to be done
Effort: Calculation of resources needed to performthe work
Resourcing: Number of resources required in theperiod
Availability of Resources
Ramsey J at # 699:there is surprisingly littledocumentation relating to the process by which
EDS prepared its Response
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
8/12
What the Judge Found -Falsity
Plans were produced to fit the 9 month timescaleSky desired
No attempt was made to identify work required or tosort out the resourcing implications
EDScosting spreadsheet showed 18 developersworking on the GUI for 320 days i.e. 5,760 man days
The 9 month plan allowed 80 days for the work i.e.76 developers
EDS admitted falsity (no proper analysis, no
reasonable grounds)
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
9/12
What the Judge Found -DishonestyNot relevant:
Consortium Partnersviews
Previous experience on other projects
Other bids: AA and PWC
Relevant:Internal Risk Lists by the Project Manager
Red Team Review -evidence of lack of resources
Choppingthe Plan for presentation to Client in
October:The Plan and resources will be artificiallymanipulated...
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
10/12
The Corporate Mind
Who is the fraudster?
Are they thedirecting mind and willof Corporation?
The individual with the relevant knowledge need notmake the representation it is enough that he/sheknows that the representation is made.
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
11/12
Joe Galloway
Mastermind for EDS Response
MD of EDSCRM Practice (part of eSolutions)
Reported to UK Head of eSolutions, Barry Yard (notcalled)
Yard reported to EMEA Head of eSolutions, Steve
Leonard
eSolutions: 1 of EDS4 practice areas, providing
consulting services in process and technologysolutions (implementation, integration and projectmanagement)
-
8/6/2019 2010 - Scl Bskyb v Eds - 8 March
12/12
Themes and Conclusions
No change to the law of deceit no need to panic!
Having bid procedures is one thing; following them isanother
Check employee CVs
Review recruitment proceduresRe-train Sales Team
Dont let Sales act independently of Business
Documentation preservation (especially analysis oftime planning, sequencing, resourcing and cost)
