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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. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  2. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  3. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

  4. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

  5. ACLU. Way to step up against the police state. I see a lot of things from the ACLU I don't like but this one is a gold star in its column.... instead of fighting it the authorities should apologize and back off.

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