State v. Int’l Bus. Machines Corp.

The State and International Business Machines, Corp. (IBM) entered into a ten-year, $1.3 billion Master Services Agreement (MSA) to modernize and improve Indiana’s welfare eligibility system. The State terminated the MSA in less than three years, stating that performance issues on the part of IBM constituted a material breach of the MSA. Both parties sued each other for breach of contract. The trial court determined that the State failed to prove that IBM materially breached the MSA. The Supreme Court reversed the trial court’s finding that IBM did not materially breach the MSA, holding that, under the circumstances of this case, IBM’s collective breaches were material in light of the MSA as a whole. View "State v. Int’l Bus. Machines Corp." on Justia Law