Bates v. Equitable Insurance Company was a case heard by the United States Supreme Court in 1869. The case involved a dispute between the plaintiff, Bates, and the defendant, Equitable Insurance Company. Bates had taken out a policy with Equitable Insurance Company, but the company refused to pay out the policy when Bates made a claim. Bates argued that the policy was valid and that the company had breached its contract by refusing to pay out the policy. The Supreme Court agreed with Bates and held that the policy was valid and that the company had breached its contract. The Court also held that the company was liable for damages for its breach of contract. The Court's decision in this case established the principle that insurance companies must honor their contracts and pay out policies when claims are made. This decision has been cited in numerous cases since then and has become an important part of contract law.

In Bates v. Equitable Insurance Company, the Supreme Court was asked to decide whether a contract between two parties could be enforced when it had been made without consideration and in violation of public policy. The majority opinion held that such contracts were not enforceable because they violated public policy. However, Justice Field dissented from this ruling and argued that while some contracts may violate public policy, there are still circumstances where they should be enforced if both parties have acted in good faith and with mutual understanding of the terms of the agreement. He further stated that courts should consider all relevant facts before deciding whether or not to enforce an otherwise invalid contract so as to prevent injustice for either party involved.