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Judge: Indiana Must Turn Over Documents To IBM

JudgeĀ ordered Indiana to turn over documents sought by IBM in lawsuits stemming from the state's cancellation of a $1.37 billion contract.

INDIANAPOLIS (AP) -- A judge on Tuesday ordered Indiana to turn over documents sought by IBM in lawsuits stemming from the state's cancellation of a $1.37 billion contract the computer company received to modernize Indiana's welfare system.

Marion Superior Judge David Dreyer ruled that documents the state said were privileged were not and should be turned over to IBM for review, The Indianapolis Star reported. The documents include emails from state employees, including Gov. Mitch Daniels. The Star reported the documents would not be made public.

The state also is seeking to have Daniels shielded from having to give a disposition sought by IBM.

The state is suing IBM to recover more than $400 million it paid before Daniels canceled the 10-year contract in 2009 amid complaints about the automated welfare system. IBM's countersuit says the state still owes the company about $100 million.

Attorney Peter Rusthoven, who is representing the state, said officials were considering appealing Dreyer's order. That would temporarily halt the suits. Rusthoven said the state would notify the court within 10 days if it decides to appeal.

Dreyer reviewed more than 11,000 pages of documents before ruling. He said he excluded a "relatively small number of documents or emails that were personal, extraneous or unrelated."

He also said he considered state employees' privacy and gave Daniels' emails "particular scrutiny and due regard."

Attorneys for IBM had criticized the state for trying to shield the documents.

"The state has delayed production of these documents since last fall, and we hope we will now receive them promptly," IBM spokesman Clint Roswell said.

The next hearing in the case is set for April 15.

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