The U.S. Supreme Court case Guerini Stone Company v. P.J. Carlin Construction Company in 1918 revolved around a contract dispute between the two parties involved in the construction of a federal building. The Guerini Stone Company, subcontracted by P.J Carlin Construction to provide stonework, claimed that they were forced to halt work due to changes made by architects and thus should be compensated for their delay time as per their agreement with Carlin Construction Co., who refused payment on these grounds. The court ruled in favor of Guerini Stone Co., stating that if an employer causes delays which prevent completion within the agreed timeframe, it cannot hold its contractor accountable for not finishing on time unless there is explicit provision against this scenario within their contract.

In the dissenting opinion for Guerini Stone Company v. P.J. Carlin Construction Company, Justice Holmes argued that the majority's decision was inconsistent with established principles of contract law and unjustly favored one party over another. He contended that when a contractor is delayed by an employer, it does not automatically entitle them to additional time or compensation unless explicitly stated in their agreement. The delay must be unreasonable and cause significant harm to warrant such remedies. Furthermore, he disagreed with the majority's interpretation of "time is of the essence" clause in contracts as absolute deadlines rather than flexible terms subject to reasonable delays beyond a party’s control. In his view, this ruling could potentially lead contractors to rush work without due care for quality or safety just to meet strict timelines imposed by employers under such clauses.