In Cleveland Insurance Company v. Globe Insurance Company, the Supreme Court of the United States was asked to decide whether a contract of insurance was valid and enforceable. The case involved two insurance companies, Cleveland Insurance Company and Globe Insurance Company. Cleveland Insurance Company had issued a policy of insurance to a third party, and Globe Insurance Company had issued a policy of reinsurance to Cleveland Insurance Company. The dispute arose when Cleveland Insurance Company sought to recover from Globe Insurance Company the amount of the policy of insurance it had issued. The Supreme Court held that the contract of reinsurance was valid and enforceable. The Court found that the contract of reinsurance was supported by consideration, and that the parties had intended to be bound by the terms of the contract. The Court also held that the contract of reinsurance was not void for lack of mutuality of obligation, as the parties had agreed to the terms of the contract and had intended to be bound by them. In conclusion, the Supreme Court held that the contract of reinsurance was valid and enforceable, and that Cleveland Insurance Company was entitled to recover from Globe Insurance Company the amount of the policy of insurance it had issued.

In Cleveland Insurance Company v. Globe Insurance Company, the Supreme Court was tasked with determining whether a fire insurance policy issued by Globe to cover a building in New York City was valid or not. The majority opinion held that the policy was invalid because it had been issued without consideration and therefore violated public policy. Justice Field dissented from this decision, arguing that while there may have been some technical violations of public policy involved in issuing the contract, these were minor issues which should not be used to invalidate an otherwise valid agreement between two parties who both intended for it to be binding. He argued that if such contracts could be easily voided on technical grounds then no one would ever feel secure entering into any kind of agreement as they could never know when their contract might suddenly become unenforceable due to some small violation of law or custom.