Insurance Company v. Barton was a case heard by the United States Supreme Court in 1871. The case involved a dispute between an insurance company and a policyholder, Barton. Barton had taken out a policy with the insurance company, but the company refused to pay out the policy when Barton made a claim. The insurance company argued that Barton had failed to disclose a pre-existing medical condition when he applied for the policy, and thus the policy was void. The Supreme Court ruled in favor of Barton, finding that the insurance company had failed to prove that Barton had deliberately withheld information about his medical condition. The Court held that the insurance company had a duty to investigate the facts of the case and to make sure that the policyholder had not deliberately withheld information. The Court also held that the insurance company had failed to meet this duty, and thus the policy was valid and the insurance company was liable to pay out the policy.

In Insurance Company v. Barton, the Supreme Court was asked to decide whether a policy of insurance issued by an insurance company could be voided if it had been obtained through fraud or misrepresentation on the part of the insured. The majority opinion held that such policies were voidable and could be rescinded by the insurer in cases where there had been fraudulent representations made in obtaining them. However, Justice Field dissented from this decision and argued that while insurers should not have to bear losses caused by fraud or misrepresentation, they should also not benefit from any mistake or misunderstanding on behalf of their customers when issuing policies. He believed that rescission was too harsh a remedy for innocent mistakes and misunderstandings as it would leave both parties without recourse; instead he proposed allowing courts to modify contracts so as to make them equitable between both parties rather than completely voiding them due to minor errors or omissions on either side.