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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. why is the State trying to play GOD? Automatic sealing of a record is immoral. People should have the right to decide how to handle a record. the state is playing GOD. I have searched for decades, then you want me to pay someone a huge price to contact my son. THIS is extortion and gestapo control. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW.

  2. I haven't made some of the best choices in the last two years I have been to marion county jail 1 and two on three different occasions each time of release dates I've spent 48 to 72 hours after date of release losing a job being denied my freedom after ordered please help

  3. Out here in Kansas, where I now work as a government attorney, we are nearing the end of a process that could have relevance in this matter: "Senate Bill 45 would allow any adult otherwise able to possess a handgun under state and federal laws to carry that gun concealed as a matter of course without a permit. This move, commonly called constitutional carry, would elevate the state to the same club that Vermont, Arizona, Alaska and Wyoming have joined in the past generation." More reading here: http://www.guns.com/2015/03/18/kansas-house-panel-goes-all-in-on-constitutional-carry-measure/ Time to man up, Hoosiers. (And I do not mean that in a sexist way.)

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  5. I am terrified to see Fracking going on not only in Indiana but in Knox county. Water is the most important resource we have any where. It will be the new gold, and we can't live without it and we can live without gold. How ignorant are people?

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