As a result of SCO's failure to comply with the Court's orders and Fed. R. Civ. P. 26(e) -- which left IBM looking for unidentified needles in an enormous haystack of operating system code, methods and concepts -- IBM was unable properly to prepare a defense to SCO's allegations.
Anyone who thinks that this is better writing than "to properly prepare" has no business giving anyone advice about how to structure a sentence.
I seem to recall other instances of similarly awkward unplit infinitives in legal documents. Perhaps this is a standard that judges are wont to enforce (or that lawyers are worried judges will enforce. In any case, it's a perfect example of how trying to follow an illusory notion of "correct" English can lead you to be a worse writer than if you just ignored the pedants and trusted your instinct.