Court: Ind. owes IBM nearly $50M in welfare fight

(WISH Photo, file)

INDIANAPOLIS (AP) — The Indiana Court of Appeals says IBM Corp. failed to deliver its part of a deal to privatize the state’s welfare system, but the company is still entitled to nearly $50 million in fees that the state agreed to pay.

Thursday’s decision sends the four-year-old dispute between IBM and the Indiana Family and Social Services Administration back to the trial judge to work out the details.

The state court ruled 2-1 that IBM failed in its most important task — to provide timely services to Indiana’s needy.

The judges said the state owes IBM nearly $50 million in agreed-upon fees, but not nearly $13 million for terminating the contract early.

The state and the company sued each other in 2010 after then-Gov. Mitch Daniels canceled the $1.3 billion contract. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others and keep the conversation on topic and civil. If you see an inappropriate comment, please flag it for our moderators to review.

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