Legal Happenings
Legal and Business Experts Explore Meaning and Impact of Rule of Law
May 08, 2026
May 1 marks Law Day, an annual celebration of the rule of law and acknowledgment of the legal system, the judiciary, and their effects on society. In the run-up to Law Day, the American Bar Association, the D.C. Bar, and Georgetown Law Center on Transnational Business and the Law cohosted the panel discussion “The Rule of Law and the American Dream” at the Georgetown University Law Center on April 29. Moderated by 2026 National Law Day Chair Michael Flowers, the program explored the rule of law and its effect on businesses and entrepreneurship.
In her opening remarks, ABA President Michelle Behnke said there is a critical link between the rule of law and economic success, such as in enforcing stability, upholding contracts, and maintaining freedom for people to live and work. “In short, the rule of law is essential to the freedom and prosperity that Americans have aspired to throughout our nation’s history,” said Behnke.
Responding to Flowers’ question to panelists about what “rule of law” means to them, Georgetown Law professor Don De Amicis said it is a system where “power is constrained, laws are fair and transparent, and justice is accessible and impartial.” De Amicis added that rule of law includes accountability for all institutions to their stakeholders; a focus on “clear, publicized, stable, not retroactive or punitive” laws; and open government.
Businesses rely on the rule of law to make plans and to uphold them, and elements such as contracts, intellectual property, and dispute resolution are hallmarks of the rule of law, De Amicis said.
Sandy Paik, general counsel for real estate developer Tower Companies, talked about her role in the company and how the rule of law affects her business. Any policy changes toward real estate have an effect on her industry, and the government “is a pretty big customer of many real estate companies in the region,” Paik said.
General counsel have a duty to protect their company’s legal interests but also must abide by their ethical obligations as officers of the court, she noted. “Some general counsel will say that you always have to be prepared to leave,” said Paik. “There are certain types of things that can happen in a company that you would not want to be a part of because it could put your license at risk.”
Jac Garner, retired CEO of book printer Webcrafters, said that good laws and good administration of laws “set the framework for major decision-making,” adding that companies prefer stability and are not good at handling uncertainty.
“When that happens, businesses tend to get pretty paralyzed in terms of making any significant decisions,” said Garner, adding that paralysis can play out in negotiating contracts, purchasing raw materials, or engaging in environmental regulations.
Melissa Mendizabal, innovation manager at the U.S. Chamber of Commerce Foundation, said that the rule of law is inseparable from economic development. Mendizabal highlighted the foundation’s Judicial Fellowship Program, which brings foreign judges to Washington, D.C., for a residential learning experience to build connections and strengthen the rule of law globally.
“We really view the rule of law and economic development intertwined as the same thing, and [we want to invest] in judges who we see as the front lines of defending the rule of law,” said Mendizabal.
She added that the U.S. Chamber of Commerce Foundation has studied the rule of law globally and found that countries with a lower adherence to it had lower economic income thresholds. Furthermore, judges in these countries faced greater threats to their work and livelihoods and lacked connection and community.
“The challenges they are facing are things that can be really isolating when they’re thinking about it alone, but when they come together, they can share solutions to these challenges,” said Mendizabal. “Judicial courage exists, and in order to help strengthen it, we must invest in it.”
In response to an audience member’s question about what role companies should play in upholding the rule of law, Garner argued for standing up for smart rules and regulations and engaging with the right professional and trade associations that further advance the rule of law.
“There were times when I think businesses felt they have a responsibility to challenge things that aren’t smart, that have gotten in the way of making good business decisions,” said Garner.
