Last week the Supreme Court of the United States heard oral argument of Northwest Airlines etc. v. Ginsberg. One observer remarked that
The most remarkable thing about the argument was the almost surreal similarity of the positions of the attorneys arguing for Northwest (former Solicitor General Paul Clement), the government (Assistant to the Solicitor General Lewis Yelin), and Ginsberg (Adina Rosenbaum of Public Citizen). All three agreed that some uses of an implied covenant are permissible, and not preempted. Thus, Clement readily conceded that when it is “just a rule of construction” that is “merely constructing the express terms of the contract,” the implied covenant should not be preempted.
A copy of the transcript appears here: