In the 1983 case Kosak v. United States, the Supreme Court ruled that a claimant could not sue the government for damages caused by Customs Service's negligent handling of his artwork under Federal Tort Claims Act (FTCA). The plaintiff, Walter J. Kosak, had imported several pieces of art which were seized by U.S. customs due to unpaid duties and subsequently damaged while in their custody. He sought compensation from the federal government for this damage under FTCA but was denied relief at both district court level and on appeal because such claims are excluded from liability under section 2680(c) of FTCA which exempts any claim arising in respect of detention goods by any officer of customs or excise. The Supreme Court upheld these rulings with a majority decision stating that Congress intended to limit lawsuits against federal agencies performing certain functions like tax collection or regulatory activities where allowing suits might hinder effective governance.

In the dissenting opinion for Kosak v. United States, it was argued that the majority misinterpreted the Federal Tort Claims Act (FTCA) and its waiver of sovereign immunity. The dissent believed that Congress intended to waive immunity for all torts committed by federal employees within their scope of employment, including negligent handling or loss of goods in customs' custody. They pointed out that there is no explicit exclusion in FTCA regarding this type of negligence and thus, such claims should not be barred from being heard in court. Furthermore, they disagreed with the majority's view on policy considerations as a basis for limiting waivers under FTCA; arguing instead that these are matters best left to Congress rather than courts interpreting statutes.