The case is unique because Sky claimed EDS was fraudulent, and had dishonestly exaggerated its abilities and resources when bidding for the contract.
This case result shows two things: IT suppliers’ sales teams must be more careful about their claims when they are trying to sell a system. Gone are the days when there was a disparity between what is sold and what is delivered.
Second, the liability cap is immaterial in fraud cases. EDS had a cap that it would not be liable for more than £30m worth of damages. But because Sky sued for fraud, the liability cap was rendered irrelevant.
This case result shows two things: IT suppliers’ sales teams must be more careful about their claims when they are trying to sell a system. Gone are the days when there was a disparity between what is sold and what is delivered.
Second, the liability cap is immaterial in fraud cases. EDS had a cap that it would not be liable for more than £30m worth of damages. But because Sky sued for fraud, the liability cap was rendered irrelevant.
What do you think?