- Concludes dispute regarding the
termination of eBorders contract
WALTHAM, Massachusetts,
March 27, 2015 /PRNewswire/
-- Raytheon Company (NYSE: RTN) announced today that its
United Kingdom subsidiary,
Raytheon Systems Limited (RSL, also known as Raytheon U.K.),
has reached an amicable settlement with the United Kingdom (U.K.)
Home Office — successfully concluding a long-running
dispute with the U.K. Home Office regarding the
July 2010 termination of its eBorders
contract.
The settlement includes a cash payment from the U.K. Home Office
to RSL of £150M in exchange for the resolution of all
claims and counterclaims of both parties that were part of the
London
arbitration of the eBorders contract claims.
In July 2010, the U.K. Home Office
terminated the eBorders contract that RSL had with the U.K. Border
Agency to provide electronic border security
capabilities. RSL disputed the validity of the termination. In
August 2010, the U.K. Home Office
initiated arbitration proceedings and brought substantial claims
against RSL.
In August 2014, after more than
four years of litigation, the Arbitration Tribunal found that
the U.K. Home Office had
unlawfully terminated the contract. It denied all of
the U.K. Home Office claims against RSL, and awarded
RSL damages for breach of contract by the U.K. Home Office and
other compensation amounting to £186M plus interest. The
Arbitration Tribunal reserved its decision on costs.
The U.K. Home Office challenged the award, and in February 2015, a judge of the
London High Court partially upheld the challenge, but stayed
his decision and granted both parties permission to appeal. RSL
filed an appeal denying there was any proper basis for a
challenge and relying on the well-established principles of
finality of arbitral awards and non-intervention by national courts
in the arbitration process.
To avoid further uncertainty and the expense of
more protracted litigation, and to strengthen their
important customer relationship with the British
Government, Raytheon and RSL have decided to put this
matter behind them.
Importantly, RSL and Raytheon Company
have continued throughout this dispute to serve
as valued suppliers to the British Government on key
defense, national security and commercial pursuits.
About Raytheon
Raytheon Company, with 2014 sales of
$23 billion and 61,000 employees
worldwide, is a technology and innovation leader specializing in
defense, security and civil markets throughout the world. With a
history of innovation spanning 93 years, Raytheon provides
state-of-the-art electronics, mission systems integration and other
capabilities in the areas of sensing; effects; and command,
control, communications and intelligence systems, as well as cyber
security and a broad range of mission support services. Raytheon is
headquartered in Waltham, Mass.
For more about Raytheon, visit us at www.raytheon.com and follow us
on Twitter @raytheon.
Raytheon Company
Global Headquarters
Waltham, Mass.
Media Contact:
Mike
Doble
+1-703-284-4345
corporatepr@raytheon.com