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Tuesday, September 03, 2013

Ind. Gov't. - "Indiana's appeal set in IBM welfare privatization case"

Tim Evans and others from the IndyStar report today in a story that begins:

The Indiana Court of Appeals will hear oral arguments Nov. 25 in the legal battle over a $52 million judgment the state has been ordered to pay IBM over the failed attempt to privatize public welfare services under former Gov. Mitch Daniels.

The state is appealing a Marion Superior Court judge’s 2012 ruling awarding $52 million to IBM after the state canceled a contract Daniels had hailed in 2006 as the solution for fixing one of the nation’s worst welfare systems.

Instead, the project ended with the state firing IBM in 2009 after hundreds of millions of dollars were spent for a system that generated widespread complaints of delayed benefits and impersonal interactions.

The dispute ended up in court, with the state trying to recoup more than $150 million of the $437 million it had paid IBM before scrapping the deal and IBM asking for $113 million for breach of contract.

Marion Superior Court Judge David Dreyer ruled in July 2012 that IBM should get $12 million, mostly for equipment the state kept after canceling the contract, on top of the $40 million that he had ordered the state to pay IBM earlier.

The verdict was appealed and now will come before a Court of Appeals panel made up of judges John G. Baker, Ezra H. Friedlander and Nancy H. Vaidik.

A long side-bar to the story traces the history of the case and sets out the arguments.

Here is a very long list of ILB entries relating to IBM.

Posted by Marcia Oddi on September 3, 2013 09:12 AM
Posted to Indiana Government