Contract dispute over loyalty cards

The Co-operative Wholesale Society (CWS) had alleged that International Computers Limited (ICL) failed to complete a contract to supply and install an IT system which would have enabled CWS to launch a new form of retail loyalty scheme. The essence of the case was, firstly, whether a contract breech had actually taken place and, secondly, if so, the extent of resultant damages. A significant proportion of the damages claim was based on "lost profits" from the operation of the new loyalty scheme. Frontier was instructed by Baker & McKenzie, on behalf of ICL, to provide expert witness testimony on specific aspects of the case. Simon Gaysford, a director at Frontier, testified in the High Court during December 2002. His testimony concentrated on assessing evidence submitted by CWS witnesses, including the methodology for calculating the level of potential supermarket sales uplifts and their use for forecasting lost sales. He also provided expert testimony on the economics of loyalty schemes in the retail sector with particular focus on supermarkets and the UK supermarket experience to date. The judge accepted the evidence and conclusions submitted by Simon, and on the basis of his testimony, questioned the views put forward by opposing witnesses. The concluding judgement for the case was that the action taken by CWS failed in its entirety and the case was concluded in favour of ICL.