The Knights of Pythias v. Withers case in 1899 revolved around a dispute between the fraternal organization, Knights of Pythias, and one of its members, Mr. Withers. The conflict arose when Mr. Withers was expelled from the organization due to his failure to pay dues while he was sick and unable to work for an extended period of time; however, he claimed that according to the bylaws of the group's constitution, he should have been exempted from paying during this period because it fell under "sickness or distress." He sued for reinstatement into the society as well as damages incurred through his expulsion. The Supreme Court ruled in favor of Mr. Withers on both counts: they ordered his reinstatement into Knights Of Pythias and awarded him $500 in damages (equivalent today is approximately $15k). They found that there had been no provision within their constitution allowing them to expel a member who failed to pay dues while incapacitated due to illness or hardship - thus making their actions against him unjustified.

In the dissenting opinion for Knights of Pythias v. Withers, Justice Peckham disagreed with the majority's decision that a fraternal benefit society could not be held liable for benefits promised to members who became disabled due to pre-existing conditions unknown at the time of membership acceptance. He argued that such societies should bear responsibility if they failed to conduct proper medical examinations before accepting new members and later discovered those members had pre-existing conditions leading to disability or death. In his view, it was unfair and unjustifiable for these organizations to escape liability based on ignorance when they were in a position where they could have easily obtained knowledge about potential risks through thorough examination procedures prior their admission as members.