Blackwell Burke P.A. Wins Multi-Million Dollar Victory for IBM

Blackwell Burke P.A. won a complete defense verdict in this bench trial, securing $14,232,000 in termination payments, plus prejudgment interest for IBM. Carlson Inc., a travel and hospitality company, entered into a ten-year master services agreement with IBM, with a total value of $646 million. Carlson claimed IBM misrepresented its expertise to perform on the contract and terminated the agreement. Carlson sued alleging fraudulent inducement, fraud in performance, breach of contract, and breach of fiduciary duties. Carlson sought monetary damages and a declaration that it was entitled to withhold payment on IBM’s charges. The judge agreed with IBM that Carlson had no legitimate concerns with its performance but terminated the agreement for convenience, and thus it was owed termination fees of $14.2 million.