RACV has won an appeal by Unisys over the IT specialist’s alleged failure to supply the Victorian insurer with a paperless claims management system. The appeal has been pending since 2001, when the Victorian Supreme Court awarded $4 million in damages to RACV.

In 1995 RACV’s new Unisys-supplied WMS system failed to do what it was designed to and was decommissioned. RACV terminated its contract the following year.

Now the full Supreme Court has unanimously dismissed the Unisys appeal, saying Unisys representations constituted misleading and deceptive conduct.

Freehills partner Irene Zeitler says Unisys’ conduct of the litigation “highlights the perils of an IT supplier doggedly persisting with the defence of litigation taken by an equally determined customer”.

“It is a most extraordinary case,” she said. “Proceedings were filed by RACV in December 1996 and have thus far taken eight years.”

She says the court was surprised Unisys was prepared to put its “significant worldwide reputation” on the line again during the 10-day appeal. It has been ordered to pay an extra $350,000 in damages and may end up paying more of RACV’s legal costs.