Lai's stock was never higher than during the controversy over the freezing of the provincial government, when he stayed aloof from both the mainstream and non-mainstream factions of the Kuomintang. Eventually, he was able to escape from the controversy completely after being appointed a Supreme Court justice by President Lee Teng-hui.
最為人所津津樂道的，莫過於精省風波中，他一直與國民黨主流與非主流兩造保持距離，並在未精省前就受前總統李登輝拔擢為司法院大法官，全身而退。