Indiana High Court Hears Arguments In State/IBM Dispute

by Rick Howlett on February 13, 2012

The Indiana Supreme Court heard arguments today over whether Governor Mitch Daniels must give a deposition in lawsuits filed over Daniels’ cancellation of a state contract with IBM.

State lawyers contend that Daniels, as a sitting governor, is protected under the state Constitution’s separation of powers clause. IBM attorneys say Daniels should be compelled to testify because he was so heavily involved in the details of the contract.

Daniels cancelled IBM’s nearly $1.4 billion contract to process welfare applications following complaints about the automated system. Indiana is suing to recover more than $400 million from IBM. The company is countersuing, saying the state owes it about $100 million.

The high court did not indicate when it would render a decision.

(Information for this story also came from the Associated Press)

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