In the case of Foley, Administratrix of Gathmann v. United States (1922), the U.S Supreme Court dealt with an issue concerning patent rights and compensation for government use of a patented invention during World War I. The plaintiff was the estate administrator for Louis A. Gathmann, who had invented a high-explosive shell that was used by the US Navy without obtaining his permission or providing him any form of compensation. After Gathmann's death in 1917, his estate sued to recover reasonable royalties under an act passed by Congress in 1910 which allowed inventors to sue if their patents were used by government departments without license agreements. The court ruled against Foley on behalf of Gathmann’s estate stating that since he did not apply for remuneration within two years after use began as required by law at that time, he forfeited his right to claim damages from unauthorized usage even though it continued beyond this period. Furthermore, they held that no cause-of-action existed because there wasn't sufficient evidence proving actual production and utilization of shells based on Mr.Gathman's design.

In the dissenting opinion for Foley, Administratrix of Gathmann v. United States, Justice McReynolds argued that the majority's decision to uphold a lower court ruling denying compensation to Mrs. Gathmann was incorrect. He believed that Mrs. Gathmann should be entitled to compensation under federal law because her husband died while performing his duties as an employee of a government contractor during World War I. According to Justice McReynolds, Mr. Gathmann’s death occurred in connection with his employment and therefore falls within the purview of the Act which provides compensation for injury or death resulting from such employment-related activities.