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Order for IBM to pay subcontractor in state suits affirmed

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An appeals court Tuesday affirmed trial court orders that IBM pay a subcontractor for costs it incurred related to lawsuits over the failed $1.3 billion Family and Social Services Administration modernization contract.

The panel upheld Marion Superior Judge David Dreyer’s ruling that ACS Human Services LLC was entitled to receive from IBM $709,398.95 in costs related to discovery and production of documents. The trial court also later imposed sanctions of $425,178.85 against ACS, reducing total net damages payable to ACS from IBM to $284,219.15.

ACS and IBM each appealed the ruling on abuse-of-discretion bases. IBM claimed ACS was so closely linked to IBM that it was not entitled to payment of costs related to third-party participation in discovery, and that the court’s award was unsupported by the evidence. IBM sought almost $900,000 in sanctions against ACS.

ACS’ cross-appeal asserted it was entitled to more than $1.67 million, that sanctions against the company in favor of IBM were impermissible under Indiana Trial Rules, and that the company didn’t engage in sanctionable conduct, among other arguments.

The court rejected arguments on appeal from both sides. In an opinion written by Judge L. Mark Bailey and joined by Judges Cale Bradford and Melissa May, the judges agreed that both sides impermissibly asked the court to reweigh the evidence.

“Thus, as we did with IBM’s appeal, we decline ACS’s invitation to second-guess the trial court’s judgment, and affirm the trial court’s determination of the amount of sanctions to be paid by ACS,” Bailey wrote in International Business Machines Corporation v. ACS Human Services, LLC, 49A02-1301-PL-49.

“The trial court did not abuse its discretion when it awarded ACS some, but not all, of the damages it requested as a result of its participation in discovery as a non-party under Trial Rule 34. Nor did the trial court abuse its discretion when it awarded IBM some, but not all, of the attorneys’ fees and other damages it incurred as a result of ACS’s failure to comply with the trial court’s discovery orders. We therefore affirm the trial court’s orders on both matters.”

The decision came one day after a separate panel heard arguments in the appeal of Dreyer’s award of $62 million in favor of IBM in a related case, State of Indiana v. IBM.

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  1. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  2. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  3. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

  4. Well, I agree with you that the people need to wake up and see what our judges and politicians have done to our rights and freedoms. This DNA loophole in the statute of limitations is clearly unconstitutional. Why should dna evidence be treated different than video tape evidence for example. So if you commit a crime and they catch you on tape or if you confess or leave prints behind: they only have five years to bring their case. However, if dna identifies someone they can still bring a case even fifty-years later. where is the common sense and reason. Members of congress are corrupt fools. They should all be kicked out of office and replaced by people who respect the constitution.

  5. If the AG could pick and choose which state statutes he defended from Constitutional challenge, wouldn't that make him more powerful than the Guv and General Assembly? In other words, the AG should have no choice in defending laws. He should defend all of them. If its a bad law, blame the General Assembly who presumably passed it with a majority (not the government lawyer). Also, why has there been no write up on the actual legislators who passed the law defining marriage? For all the fuss Democrats have made, it would be interesting to know if some Democrats voted in favor of it (or if some Republican's voted against it). Have a nice day.

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