By Angela Chen
Raytheon Co. said Tuesday that the United Kingdom had won its
challenge to a previous ruling that had ordered the country to pay
the defense contractor $309 million for a terminated contract.
A judge in the U.K. found that the original tribunal's ruling
didn't take into account issues regarding the responsibility for
the delay and the impact on the damage awarded to Raytheon, the
company said.
Since these issues could have affected the outcome, the dispute
will now be resolved by a new tribunal and won't be sent to the
existing tribunal for further consideration.
Raytheon intends to appeal the decision.
Last August, the tribunal ruled in favor of Raytheon following a
four-year legal battle over a disputed homeland security contract,
setting the stage for the company to recoup damages and other
relief from the U.K. government.
The company was hired in 2007 to develop and operate a new
electronic system for monitoring travelers entering and leaving the
U.K., only to be fired by the incoming coalition government in 2010
over alleged performance problems.
The two sides filed claims and counterclaims for hundreds of
millions of pounds in damages as the dispute went before an
arbitration court in London, which ruled in favor of Raytheon.
In its most recently ended quarter, Raytheon reported a 10% rise
in fourth-quarter profit that, like its 2015 guidance, fell short
of investor expectations.
Write to Angela Chen at angela.chen@dowjones.com
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