Home Office to pay Raytheon £150m in cash.
A settlement has been agreed upon between the UK Home Office and Raytheon, with the former agreeing to pay £150m to end the long-running dispute regarding the 2010 termination of its eBorders contract.
Raytheon’s UK subsidiary, Raytheon Systems Limited (RSL), will receive a cash payment of £150m from the Home Office in exchange or the resolution of all claims and counterclaims of both parties that were part of the London arbitration of the eBorders contract claims.
The dispute started when, in July 2010, the 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 which then led to the Home Office initiating arbitration proceedings against RSL in August 2010.
After more than four years of litigation, the Arbitration Tribunal found that the U.K. Home Office had unlawfully terminated the contract. The Tribunal awarded RSL £186m in compensation for breach of contract.
However, the battle was far from over. The Home Office then appealed the decision, resulting in a London High Court judge in February 2015 partially upholding the challenge. The back and forth continued, with RSL then appealing, denying there was any proper basis for a challenge.
The two parties then decided enough was enough, and finally came to an agreement to put the business behind them – after nearly battling it out for nearly 5 years.