Cable & Wireless Plc v IBM United Kingdom Ltd.

Cable & Wireless Plc v IBM United Kingdom Ltd.

The court determined that, due to the absence of rectification or estoppel pleas and the discrete nature of the construction issue, it is appropriate and efficient to order a preliminary trial of the construction issue. This approach is justified by the need for commercial certainty in a long-term contract, the...

Source-derived case information.

Parties
Claimant: Cable & Wireless PLC; Defendant: IBM United Kingdom Ltd
Jurisdiction
England and Wales
Judgment Date
27 February 2003
Procedural Posture
Commercial Contract Dispute / Case Management Conference; Application for Preliminary Issue Trial
Outcome
Application granted; construction issue to be tried as a preliminary issue
Legal Topics
Interpretation of Contract Terms, Preliminary Issues, Case Management, Benchmarking Process, Counterclaim Procedure
Contract Law Commercial Law Interpretation of Contract Terms Preliminary Issues Case Management Benchmarking Process Counterclaim Procedure

Source-derived case record

Summary, issues, holding and outcome

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Parties

Cable & Wireless PLC

Claimant

IBM United Kingdom Ltd

Defendant

Procedural Posture

Commercial Contract Dispute / Case Management Conference; Application for Preliminary Issue Trial

Legal Issues

  1. 1 Whether the construction issue regarding paragraph 5.3 of Schedule 10 to the GFA should be tried as a preliminary issue
  2. 2 Whether the Compass benchmarking reports were valid under the contract
  3. 3 Whether IBM is entitled to damages on its counterclaim for alleged breach by C&W

Ratio Decidendi

The court determined that, due to the absence of rectification or estoppel pleas and the discrete nature of the construction issue, it is appropriate and efficient to order a preliminary trial of the construction issue. This approach is justified by the need for commercial certainty in a long-term contract, the potential to facilitate settlement, and the impracticality of a full trial in the immediate future given the complexity and likely involvement of Compass in the other issues.

Court Disposition

Application granted; construction issue to be tried as a preliminary issue

Orders

  • Trial of the construction issue as a preliminary issue ordered
  • Directions given for the management of both the preliminary issue and the remaining issues