Appellate Court To Hear IBM-FSSA Contract Dispute
September 3, 2013 — INDIANAPOLIS — The Indiana Court of Appeals set a late-November hearing in the state’s legal fight with IBM Corp. over a failed attempt to overhaul Indiana’s welfare system.
The state is appealing a Marion County judge’s ruling last year awarding $52-million to IBM after then-Gov. Mitch Daniels canceled what was a 10-year, $1.37-billion contract to process applications for food stamps, Medicaid and other programs.
State officials sought to recoup roughly $170-million from IBM, but the judge ruled that Indiana failed to prove the company breached its contract.
A three-judge appeals court panel is scheduled to hear oral arguments in the case on Nov. 25.