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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. Can I get this form on line,if not where can I obtain one. I am eligible.

  2. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  3. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  4. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

  5. Could be his email did something especially heinous, really over the top like questioning Ind S.Ct. officials or accusing JLAP of being the political correctness police.

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