London Borough of Southwark v IBM UK Ltd

London Borough of Southwark v IBM UK Ltd

Southwark failed to prove that IBM was in breach of any express or implied term as to satisfactory quality or fitness for purpose. The Arcindex contract expressly excluded implied terms, and the Sale of Goods Act did not apply as there was no transfer of property in goods, only a licence. Even if the Act applied, the exclusion was reasonable under UCTA. Southwark selected and evaluated Arcindex, and the software performed as described. There was no breach, and causation was not proved.

Parties
Claimant: The Mayor and Burgesses of the London Borough of Southwark; Defendant: IBM UK Limited
Jurisdiction
England and Wales
Judgment Date
17 March 2011
Procedural Posture
Civil (contract/commercial) / Judgment After Full Trial
Outcome
Claim dismissed; judgment for IBM UK Limited.
Legal Topics
Software Procurement, Implied Terms, Fitness for Purpose, Satisfactory Quality, Sale of Goods Act, Unfair Contract Terms Act, Breach of Contract
Contract Law Commercial Law IT Law Software Procurement Implied Terms Fitness for Purpose Satisfactory Quality Sale of Goods Act +2 more

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Parties

The Mayor and Burgesses of the London Borough of Southwark

Claimant

IBM UK Limited

Defendant

Procedural Posture

Civil (contract/commercial) / Judgment After Full Trial

Legal Issues

  1. 1 Whether IBM was in breach of contract for supplying software (Arcindex) that was allegedly not fit for purpose or of satisfactory quality
  2. 2 Whether any express or implied terms as to fitness for purpose or satisfactory quality applied to the Arcindex contract
  3. 3 Whether the Sale of Goods Act 1979 and/or Unfair Contract Terms Act 1977 applied to the contract

Ratio Decidendi

Southwark failed to prove that IBM was in breach of any express or implied term as to satisfactory quality or fitness for purpose. The Arcindex contract expressly excluded implied terms, and the Sale of Goods Act did not apply as there was no transfer of property in goods, only a licence. Even if the Act applied, the exclusion was reasonable under UCTA. Southwark selected and evaluated Arcindex, and the software performed as described. There was no breach, and causation was not proved.

Court Disposition

Claim dismissed; judgment for IBM UK Limited.

Orders

  • Southwark's claim is dismissed in its entirety.
  • Judgment entered for IBM UK Limited.