INDIANAPOLIS (AP): The Indiana Supreme Court has ruled IBM Corp. breached its state contract in its failed attempt to privatize Indiana’s welfare services but is still entitled to nearly $50 million in state fees.
Tuesday’s ruling upholds a 2014 state Court of Appeals ruling and reverses a trial court’s finding that Indiana failed to prove IBM breached the $1.3 billion state contract it won in 2006.
Then-Gov. Mitch Daniels canceled the contract in 2009 after the privatization effort failed. The parties then countersued.
Tuesday’s ruling also reverses the trial court’s award of $13 million to IBM and directs that court to determine how much IBM owes Indiana in damages.
Peter Rusthoven, a private attorney representing Indiana’s welfare services agency, says Indiana claims about $175 million in damages from IBM’s contract breach.