Hospitality company Carlson has lost an outsourcing dispute with IBM and must pay the tech company $14.2 million.
Minnetonka-based Carlson sued IBM for breach of contract and fraud after it cut short a 10-year outsourcing deal with the Aramonk, N.Y.-based company. At the time, Carlson said IBM wasn’t delivering better service at a lower cost.
U.S. District Judge Joan Erickson didn’t agree with Carlson’s claims, however. TheStar Tribune reports that she found in IBM’s favor, saying in a ruling that Carlson’s evidence didn’t prove “IBM’s performance was an unmitigated disaster.”
Erickson noted that Carlson gave IBM favorable performance reviews during the time the companies worked together.
Carlson was seeking nearly $76 million in damages from IBM. The company tells the Star Tribune it is disappointed, but “looking forward to bringing this matter to resolution.”
IBM stopped using Carlson’s hotels shortly after the legal battle began. It’s unclear whether it will return now.
Date: August 08, 2014