In the case of Leo Sheep Co. et al. v. United States et al., 1978, the U.S Supreme Court ruled in favor of the federal government's right to take private property for public use under its power of eminent domain, provided that just compensation is given to landowners as required by the Fifth Amendment. The dispute arose when Congress passed an act authorizing a land exchange between Wyoming ranchers and the Department of Interior without providing direct monetary compensation to affected parties but instead offering them grazing rights on adjacent lands as part of a plan to create a national park at Grand Teton National Park. The ranchers argued this violated their constitutional rights because they were not adequately compensated for their loss; however, the court held that while fair market value is often used as measure for "just" compensation, it does not always have to be in cash form and can include other forms like equivalent property or benefits.

In the dissenting opinion for Leo Sheep Co. et al. v. United States et al., Justice William Rehnquist disagreed with the majority's interpretation of an 1866 statute granting right-of-way through public lands to construct highways, arguing that it did not grant a permanent easement to the government but rather only a temporary one while construction was ongoing. He also contended that even if such an easement were granted, it would be limited in scope and could not include land necessary for maintenance or operation of a highway without compensation to the property owner under Fifth Amendment takings clause principles. Furthermore, he argued that subsequent legislation had extinguished any rights previously granted by this statute and therefore there was no legal basis for denying compensation to affected landowners when their property is taken for highway purposes.