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Indiana Supreme Court Expedites Decision In IBM Case

IBM has counter-sued the state of Indiana for $100 million after its contract with the state was cancelled in 2009.

The Indiana Supreme Court has agreed to a request from Governor Mitch Daniels’ lawyers to expedite a decision on whether Daniels can be forced to provide a deposition in a case between the state and IBM.

Attorneys for IBM want to question Daniels as part of a lawsuit brought by the company over the state‘s cancellation of the contract with it to modernize the state‘s welfare application process. Daniels and his attorneys have argued that he should not be compelled to face questions in this or any other lawsuit because state law protects high-ranking state officials from providing depositions.

IBM had won a $1.4 billion, 10-year contract to modernize the state‘s welfare system, but after numerous complaints from the public and from lawmakers, Daniels canceled the contract in 2009. The state sued IBM in May 2010 to recoup the $437 million it had paid the company. IBM counter-sued, saying the state has some of its property, and that it is still owed about $100 million.

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