Maybe Black Isle are sticking to the AD&D 1st Edition "Maximum AC-10" rule (actually the best that you could make it then was -14( Paladin, Dex 18, Plate+5, Shield+5 and an effective -2 for his innate protection from evil and either a prayer or a chant, I can't remember but all three of them stacked)). In wich case Night might have pushed the AC past the maximum game limit and then, when he removed the footwear the game realised the removal of a beneficial object and removed the benefits from existing AC bonuses. However I doubt this.
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Balgin, the Dwarf
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