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Appellate arguments in cancelled IBM contract set for Nov. 25

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A panel on the Indiana Court of Appeals will hear arguments later this month on whether the state should have to pay more than $62 million to IBM after cancelling its billion-dollar contract with the company to modernize Indiana’s welfare system.

The state entered into the contract with IBM in 2006, but less than three years into the agreement – which included reducing the need for face-to-face meetings with caseworkers – the state terminated the contract, citing performance issues. IBM and the state each sued the other in Marion Superior Court.

IBM won a $40 million summary judgment in assignment fees, plus nearly $12 million for equipment costs and other contract claims after a six-week bench trial last year. With prejudgment interest, the total the state owes IBM is now more than $62.7 million.

The state is raising four issues on appeal: whether the trial court erred in concluding that it did not terminate the contract for cause, whether the assignment fees are an unenforceable penalty, whether it is liable to IBM for the equipment that it kept after termination of the contract, and whether IBM is entitled to prejudgment interest against the state, a sovereign entity.  

IBM is cross-appealing, arguing that it is entitled to an additional $43.4 million in deferred fees and $931,928 in change order fees.

Arguments will be before Judges John Baker, Ezra Friedlander and Nancy Vaidik in the Indiana Supreme Court courtroom. The arguments are scheduled for 1:30 to 3 p.m.
 

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  1. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  2. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  3. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  4. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

  5. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

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