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State moves forward with IBM appeal

August 21, 2012

Attorneys for the state of Indiana have begun the formal appeal process after a Marion County court in July awarded a $52 million judgment to IBM over cancellation of the company’s contract to privatize social service claims processing.

Peter Rusthoven and John Maley of Barnes & Thornburg LLP filed a notice of appeal with the clerk of the Court of Appeals on Aug. 13. Gov. Mitch Daniels vowed the state would appeal the order on July 18, the day it was issued by Marion Superior Judge David Dreyer.

Dreyer awarded IBM $12 million for early termination closeout payments and equipment, in addition to a sum of $40 million in subcontractor assignment fees that had been granted previously. The state was awarded nothing on its claim that IBM was in breach of contract.

IBM sought $100 million in early-termination fees and the state claimed IBM’s breach merited damages of $125 million.

The case is State of Indiana v. IBM, 49D10-1005-PL-021451.


 

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