United States v. Winstar
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| United States v. Winstar | |
| Court | Supreme Court of the United States |
|---|---|
| Citation | 518 U.S. 839 |
| Date decided | July 1, 1996 |
| Followed by | |
| Glendale Federal v. United States | |
Facts
This case arose a decade after the start of the Savings & Loan Crisis (S&L crisis) of the 1980s.
The S&L industry was designed to provide citizens with affordable housing funds in the 1980s.
An S&L or "thrift" is a financial institution that was designed to make home ownership accessible. In the 1980s, the government was seizing & closing many thrifts for non-compliance in regards to the minimum capital requirements of the thrifts. At some point in the 1980s, the government got into contracts to cajole big banks to rescue S&Ls.Issues
What are the obligations of the U.S. government to honor its contracts with private banks?
What are the powers of the federal government to pass laws that affect the government's contracts with private parties?Holding
The U.S. government breached its contracts with the banks that rescued failing S&Ls. Their cases are remanded to the federal claims court for damages trials.
Judgment
The lower court must determine the exact amount of damages to the involved parties
