International Business Machines Corp. v. State ex rel. Indiana Family & Social Services Administration
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In this appeal concerning whether International Business Machines, Corp. (IBM) was entitled to post-judgment interest on its $49.5 million damages award running from the date of the original judgment or running from the judgment on remand the Supreme Court held that the post-judgment interest due to IBM runs from the judgment on remand.
The State, acting on behalf of the Family and Social Services Administration, and IBM entered into a contract to improve Indiana's welfare eligibility system. The Supreme Court earlier determined that IBM materially breached the contract and remanded the matter to the trial court to determine damages and appropriate offsets. On remand, the trial court determined damages and that IBM was entitled to offsets in the amount of $49.5 million. The court of appeals determined that IBM was entitled to post-judgment interest on the $49.5 million damages award. In determining at what pointing time post-judgment interest runs the Supreme Court held that post-judgment interest due to IBM stems from the judgment on remand rather than the original judgment.
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