Post by Logan on Mar 23, 2016 0:22:48 GMT -6
Indiana court upholds ruling that IBM breached state contract, still due $50M
INDIANAPOLIS — IBM Corp. breached its state contract in the company’s failed attempt to privatize Indiana’s welfare services but is still entitled to nearly $50 million in state fees, the state Supreme Court said Tuesday in a ruling that also opens the door for Indiana to seek up to $175 million in damages.
The high court’s ruling in the long-running case upholds a February 2014 state Court of Appeals ruling and reverses a trial court judge’s finding that Indiana had failed to prove IBM breached the $1.3 billion state contract it won in 2006. Under that contract, an IBM-led team of vendors had worked to process applications for food stamps, Medicaid and other public safety-net benefits through the call centers, the Internet and fax machines that residents could use to apply for those benefits.
Then-Gov. Mitch Daniels canceled the 10-year contract in 2009 following complaints from welfare clients, lawmakers and others about long wait times, lost documents and improper rejections. IBM and Indiana then countersued each other, setting off the complicated court fight.
Justice Mark Massa recused himself from the case because he was Daniels’ general counsel when the contract was signed.
Read more: www.indystar.com/story/news/2016/03/22/indiana-court-upholds-ruling-ibm-breached-state-contract-still-due/82135556/
INDIANAPOLIS — IBM Corp. breached its state contract in the company’s failed attempt to privatize Indiana’s welfare services but is still entitled to nearly $50 million in state fees, the state Supreme Court said Tuesday in a ruling that also opens the door for Indiana to seek up to $175 million in damages.
The high court’s ruling in the long-running case upholds a February 2014 state Court of Appeals ruling and reverses a trial court judge’s finding that Indiana had failed to prove IBM breached the $1.3 billion state contract it won in 2006. Under that contract, an IBM-led team of vendors had worked to process applications for food stamps, Medicaid and other public safety-net benefits through the call centers, the Internet and fax machines that residents could use to apply for those benefits.
Then-Gov. Mitch Daniels canceled the 10-year contract in 2009 following complaints from welfare clients, lawmakers and others about long wait times, lost documents and improper rejections. IBM and Indiana then countersued each other, setting off the complicated court fight.
Justice Mark Massa recused himself from the case because he was Daniels’ general counsel when the contract was signed.
Read more: www.indystar.com/story/news/2016/03/22/indiana-court-upholds-ruling-ibm-breached-state-contract-still-due/82135556/