The New York Times published an op-ed column by GW law professor Lawrence Cunningham today, titled “AIG’s Bonus Blackmail.” Cunningham argued that insurance giant AIG must do more than simply assert a contractual obligation to pay $165 million in bonus payments:
If the government is serious about finding a legitimate basis for abrogating these payments, officials must look to basic legal principles. And if A.I.G. is serious that it is legally bound to pay these bonuses, it must do more than say nonpayment would expose it to damages or penalties. Nor is it enough to invoke the sanctity of contracts, because our legal and business system recognizes plenty of valid excuses from contractual duty and even justification for breaching.
Read the full piece here.