BT to sue council over "unlawful" contract termination
BT says it is suing Essex County Council after the supplier claimed that the local authority terminated its IT outsourcing contract illegally.
Essex brought in BT four years ago in a bid to save money, but council leaders have decided to end the arrangement and bring IT back in-house.
A spokesman for BT said: "We are disappointed Essex County Council has unlawfully terminated our contract. Having discussed the position with our lawyers, we can confirm we will be seeking substantial damages."
The contract still had three and a half years to run.
Public sector union Unison claimed that the authority stood to lose millions of pounds after ditching the deal.
In a report last year, Unison said that council staff were unhappy with the way the work was being carried out by BT.
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