In Manufacturing Company v. United States, the Supreme Court was asked to decide whether the United States was liable for damages caused by the destruction of a manufacturing company’s property during the Civil War. The company argued that the United States was liable for the damages because the destruction was done by the United States military forces. The United States argued that it was not liable because the destruction was done in the course of a military operation and was necessary for the war effort. The Supreme Court held that the United States was not liable for the damages. The Court reasoned that the destruction of the property was done in the course of a military operation and was necessary for the war effort. The Court also noted that the destruction was done in the exercise of the United States’ sovereign power and was not done with the intent to cause harm. Therefore, the Court held that the United States was not liable for the damages caused by the destruction of the manufacturing company’s property.

In Manufacturing Company v. United States, the Supreme Court was asked to decide whether a manufacturing company could be held liable for damages caused by an employee's negligence while operating a steamboat owned by the company. The majority opinion of the court found that since the employee was acting within his scope of employment and under orders from his employer, it would be unjust to hold only him responsible for any resulting damage. Justice Field dissented from this decision on two grounds: firstly, he argued that there is no legal principle which requires employers to indemnify their employees against liability arising out of negligent acts; secondly, he contended that even if such a principle did exist in law or equity, it should not apply in this case because the owner had knowledge of and consented to its servant's conduct prior to any injury occurring. He concluded that holding only one party accountable for damages caused by another’s negligence would lead to injustice and unfairness in many cases where both parties are equally at fault.