In the 1989 case of James M. White v. United States et al., the Supreme Court dealt with issues related to tax law and bankruptcy proceedings. The petitioner, James M. White, was a debtor in possession under Chapter 11 of the Bankruptcy Code who sought to use net operating losses from his pre-petition business operations as carrybacks for taxable years preceding his petition's filing date to obtain refunds that would become part of his bankruptcy estate. However, this was challenged by the Internal Revenue Service (IRS) which argued that such usage is prohibited by Section 1398(g)(1) of the Internal Revenue Code. The Supreme Court ruled in favor of IRS stating that Section 1398(g)(1), when read together with other relevant provisions, unambiguously provides that post-petition net operating losses are not available for carryback to pre-petition years unless they can be carried back without regard to any temporal limitations imposed elsewhere in Tax Code or if there is an express statutory authorization allowing it.

In the dissenting opinion for James M. White, ETC. v. United States et al., Justice Scalia disagreed with the majority's interpretation of the Federal Tort Claims Act (FTCA). He argued that a strict reading of FTCA does not support an exception to sovereign immunity in cases where federal law enforcement officers commit intentional torts while executing searches, seizures or arrests. According to him, such an expansive view could lead to potential abuses and frivolous lawsuits against government officials performing their duties under challenging circumstances. Furthermore, he contended that Congress did not intend for FTCA to cover all actions by law enforcement but only those related specifically to investigative or law enforcement activities as defined within the act itself.