IBM to appeal order to pay Indiana $78 million - Tri-State News, Weather & Sports

IBM to appeal order to pay Indiana $78 million

(Raycom Image) (Raycom Image)

IBM says it will appeal a ruling ordering it to pay Indiana $78 million in damages stemming from the company's failed effort to automate much of the state's welfare services.

New York-based IBM Corp. said in an email Monday that it worked "diligently and invested significant resources" toward improving Indiana's system for processing of Indiana's welfare applications.

Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels cancelled the company's $1.3 billion contract to privatize and automate the processing of Indiana's welfare applications following numerous complaints.

The Marion County judge's ruling Friday came nearly six months after hearing arguments in the case. The ruling was published Monday.

An attorney for the state, Peter Rusthoven, says Marion County judge's ruling "vindicates" the state's actions.

The Indiana Supreme Court ruled last year that IBM breached its contract. The justices affirmed a lower court's award of nearly $50 million to IBM in state fees, but that ruling allowed Indiana to seek more than $172 million in damages from IBM.

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