In the case of Creek Nation v. United States in 1942, the Supreme Court ruled on a dispute between the Creek Nation and the U.S. government regarding compensation for lands ceded to the federal government under an 1866 treaty. The Creeks claimed that they were inadequately compensated for their land based on its true value at that time, arguing it was worth more than what they received from sales conducted by tribal members or leases granted by them before Oklahoma statehood in 1907. However, these transactions had been approved by Congress as part of efforts to dissolve communal tribal ownership and allot individual parcels to tribe members (a policy known as "allotment"). The court held that such Congressional approval did not constitute a taking requiring just compensation under Fifth Amendment due process protections because it merely regulated use of property rather than depriving owners of all economically beneficial uses without adequate payment. Therefore, no additional compensation was owed beyond what had already been paid through allotment proceeds.

In the dissenting opinion for Creek Nation v. United States, Justice Frank Murphy argued that the majority's decision was a misinterpretation of Congress' intent and an injustice to the Creek Nation. He contended that when Congress provided for allotment of tribal lands in severalty among individual members, it did not intend to extinguish all rights of the tribe in unallotted lands or surplus proceeds derived from their sale. Rather, he believed that these were reserved for future determination by either mutual agreement between government and tribes or through legislation if necessary. The justice also criticized how this case was handled procedurally; specifically objecting to its referral back to Court of Claims without allowing Creeks opportunity to present additional evidence regarding congressional intent behind relevant statutes. In his view, such procedural irregularities coupled with flawed interpretation led to unjust deprivation of property rights belonging rightfully to Creek Nation.