[2024] EWHC 2329 (TCC)

In the summer of 2017, JLR requested IBM to provide a new data storage solution. IBM was to build a new hardware environment and IBM and JLR were to cooperate to migrate the existing data into that environment. IBM and JLR agreed three connected contractual Statements of Work dated 18 August 2017 covering the work to be carried out. IBM purchased the relevant hardware and software, but JLR failed to comply with its own obligations including the requirement under Statement of Work 894 to complete the remediation of applications on their servers. As a result, IBM was required at JLR’s request to maintain and manage both the old and new environments. That resulted in additional work and costs in a total amount of approximately £2.9 million between February 2019 and October 2021.

On those facts, Kyndryl claims: (a) that it is entitled under the terms of the DCHA to a variation of the DCHA reflecting those additional costs; (b) alternatively, damages for breach of the terms of Statement of Work 894; (c) alternatively, restitution on the ground that JLR was unjustly enriched by the additional work at the expense of IBM.