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State Supreme Court to decide Indiana-IBM dispute

August 11, 2014

The state Supreme Court will decide a dispute between the state of Indiana and IBM over the company's failed attempt to privatize public welfare services.

The Indianapolis Star reports Justice Mark Massa has recused himself because he was general counsel to former Gov. Mitch Daniels.

IBM won the $1.4 billion contract after Daniels signed off on privatization in 2006, but the state canceled the contract in 2009 because of complaints.

The two sides sued each other in 2010. The state was seeking the return of more than $437 million. A Marion County judge awarded $52 million to IBM in 2012.

The Indiana Court of Appeals in February found IBM failed to deliver its part of the deal, but found it was still entitled to nearly $50 million in fees.

The Supreme Court granted transfer in three other cases for the week ending Aug. 8:

  • State Board of Funeral and Cemetery Service v. Settlers Life Insurance Company, 49S05-1408-PL-514. In March, the Court of Appeals affirmed a Marion Superior ruling that a company that sells an insurance policy with the option to assign it to a trust to use the funds for funeral services is not subject to the Pre-Need Act.
  • Dustin E. McCowan v. State of Indiana, 64S03-1408-CR-516. In April, the Court of Appeals affirmed McCowan’s murder conviction, finding that under the totality of the circumstances, McCowan’s rights weren’t violated when police conducted a warrantless search of his cell phone to obtain records, texts and location of calls.
  • In the Matter of the Adoption of B.C.H., a Minor, 41S04-1408-AD-515. The Court of Appeals affirmed  denial of grandparents’ motions seeking relief from an adoption decree by child’s stepfather. Grandparents seek custody of a child they raised from birth to 27 months old.

Supreme Court transfer disposition lists may be viewed here.


 

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