United States v. Winstar Corp., 518 U.S. 839, 82 (1996)

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920

UNITED STATES v. WINSTAR CORP.

Scalia, J., concurring in judgment

ed. 1995). See Horwitz-Matthews, Inc. v. Chicago, 78 F. 3d 1248, 1250-1251 (CA7 1996).

In this case, it was an unquestionably sovereign act of government—enactment and implementation of provisions of FIRREA regarding treatment of regulatory capital—that gave rise to respondents' claims of breach of contract. Those claims were premised on the assertion that, in the course of entering into various agreements with respondents, the Government had undertaken to continue certain regulatory policies with respect to respondents' recently acquired thrifts; and the Government countered that assertion, in classic fashion, with the primary defense that contractual restrictions on sovereign authority will be recognized only where unmistakably expressed. The "unmistakability" doctrine has been applied to precisely this sort of situation— where a sovereign act is claimed to deprive a party of the benefits of a prior bargain with the government. See, e. g., Merrion v. Jicarilla Apache Tribe, 455 U. S. 130, 135-136, 145-148 (1982).

Like The Chief Justice, see post, at 924-931, I believe that the unmistakability doctrine applies here, but unlike him I do not think it forecloses respondents' claims. In my view, the doctrine has little if any independent legal force beyond what would be dictated by normal principles of contract interpretation. It is simply a rule of presumed (or implied-in-fact) intent. Generally, contract law imposes upon a party to a contract liability for any impossibility of performance that is attributable to that party's own actions. That is a reasonable estimation of what the parties intend. When I promise to do x in exchange for your doing y, I impliedly promise not to do anything that will disable me from doing x, or disable you from doing y—so that if either of our performances is rendered impossible by such an act on my part, I am not excused from my obligation. When the contracting party is the government, however, it is simply not reasonable to presume an intent of that sort. To the con-

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