In the case of MacMath, Administratrix of MacMath v. United States (1918), the U.S Supreme Court ruled in favor of the United States government over a claim made by Mrs. MacMath, who was seeking compensation for her husband's death during his service in World War I. Mr. MacMath had purchased an insurance policy under the War Risk Insurance Act but died before he could pay any premiums on it due to illness contracted while serving overseas. The court held that since no premium payments were ever made on this policy, there was no valid contract between Mr. MacMath and the government from which Mrs. Macmath could derive any rights or benefits.

In the dissenting opinion for MacMath v. United States, Justice Holmes disagreed with the majority's decision to deny compensation to Mrs. MacMath for her husband's death due to negligence on part of a government employee. He argued that while it is true that the U.S. government cannot be sued without its consent, this principle should not apply in cases where an individual acting as an agent of the state commits a wrongful act resulting in harm or loss to another person. In such instances, he believed that justice demanded holding the state accountable through its agents and providing appropriate redress to those who suffered injury or loss because of their actions.