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Andrew Green QC and Rob Weekes recently successfully appeared for the major US defence contractor, Raytheon, in a substantial LCIA arbitration - the Award having been recently published and appearing on the front pages of many national newspapers.

Raytheon's contract with the UK Government was terminated shortly after the Coalition Government came to power (being the first such contract terminated by the Government as part of its Spending Review). The contract was for the design, development and implementation of the £1bn e-Borders IT system, being a highly complex system to be operated by the UK Border Agency. Various contractual milestones were missed as a result of which the contract was terminated, and the central issue in the arbitration was which contracting party was responsible for the missing of the milestones. Raytheon sought damages in excess of £500m, and Home Office advanced a cross-claim for a slightly lower sum. The case involved the detailed examination of a government IT programme of national strategic importance.

The Tribunal ruled that the Home Secretary had unlawfully terminated the contract and awarded Raytheon £224 million, dismissing all of the Home Office’s claims against Raytheon and awarding Raytheon its costs. The Home Secretary has announced a number of inquiries in the light of the Award, with a view to identifying ‘lessons learned’.

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