The Kimball Laundry Co. v. United States case in 1948 revolved around the issue of compensation for government requisition of private property during wartime under the Fifth Amendment's Takings Clause, which states that private property cannot be taken for public use without just compensation. The U.S military had seized a laundry facility owned by Kimball Laundry Company during World War II to clean and sterilize hospital linens, subsequently causing damage to the equipment and loss of business goodwill due to inability to serve its customers over an extended period. The Supreme Court ruled in favor of Kimball Laundry Co., stating that while temporary takings do not entitle owners to full market value as if it were permanent seizure, they are entitled to recover any actual losses incurred from such taking including potential future profits lost (business goodwill). This ruling set a precedent on how courts should calculate "just compensation" when government temporarily takes possession of private properties.

In the dissenting opinion for Kimball Laundry Co. v. United States, Justice Robert H. Jackson argued that the majority's ruling expanded the government's liability under eminent domain beyond what was intended by law and precedent. He contended that while temporary takings should be compensated, this compensation should not include business losses or goodwill because these are intangible assets not directly tied to property ownership rights but rather to ongoing operations of a business which can vary greatly based on many factors outside of property control itself. In his view, including such elements in compensation would make it difficult to determine fair value and could lead to excessive claims against the government.