CONTRACTUAL PROVISION PROVIDING FOR PAYMENT OF AN ARBITRAGE REBATE. SHOULD THE DISTRICT CHOOSE TO PAY, UNDOUBTEDLY DISTRICT COUNSEL WOULD ALSO EXPLORE WHETHER THE DISTRICT MAY BE ENTITLED TO REIMBURSEMENT OF THAT PAYMENT BY OTHER PARTIES
ISSUES REGARDING INDUCEMENT AND PERFORMANCE OF THE AGREEMENT ARE BEYOND THE SCOPE OF YOUR REQUEST. MY REVIEW OF THIS SITUATION HAS BEEN LIMITED TO THE VALIDITY OF THE CONTRACTUAL OBLIGATION OF THE DISTRICT WITH RESPECT TO MAKING AN ARBITRAGE REBATE PAYMENT. THERE MAY BE VALID LEGAL REASONS RELATED TO THE AGREEMENT TO JUSTIFY THE DISTRICT'S REFUSAL TO PAY. HOWEVER, THE DECISION TO PAY LIES SOLELY WITH THE DISTRICT AFTER CONSULTATION WITH DISTRICT LEGAL COUNSEL.
(DOUGLAS F. PRICE)