Justices Hear Indiana-IBM Services Contract Case
October 30, 2014 –Indiana Public Broadcasting’s Brandon Smith reports…
INDIANAPOLIS (AP) — The Indiana Supreme Court is weighing legal arguments in a dispute between state officials and IBM over the company’s failed attempt to privatize Indiana’s welfare services.
Four of the five justices peppered state and IBM attorneys with questions during Thursday’s oral arguments over Indiana’s cancellation of IBM’s $1.3 billion contract to automate much of the state’s welfare system.
Justice Mark Massa recused himself because he was then-Gov. Mitch Daniels’ general counsel when the contract was signed in 2006.
IBM and Indiana sued each other after Daniels canceled the contract in 2009 following complaints about long wait times, lost documents and improper rejections.
The state appeals court in February found IBM failed to deliver its part of the deal, but was still entitled to nearly $50 million in fees.