In the case of Milwaukee County v. M.E. White Co., the U.S Supreme Court ruled in favor of Milwaukee County, stating that it was not liable for damages incurred by M.E. White Co during a construction project on county property due to unforeseen soil conditions. The court held that under Wisconsin law, public entities were immune from liability for torts committed in their governmental capacity unless such immunity was expressly waived by statute or legislative action - which had not occurred here. The dispute arose when M.E. White Co., a contractor hired by the county to construct an underground tunnel, encountered unexpected quicksand-like soil conditions leading to increased costs and delays in completion of the project. M.E.White Company sued for compensation arguing that they should have been warned about these adverse conditions but lost at both trial and appellate levels before appealing to the Supreme Court. The ruling reinforced sovereign immunity principles protecting government entities from certain types of lawsuits unless explicitly stated otherwise through legislation.

In the dissenting opinion for Milwaukee County v. M.E. White Co., Justice Stone argued that the majority's decision to allow a county to repudiate its contracts was inconsistent with previous rulings and undermined the sanctity of contract law. He emphasized that there were no exceptional circumstances in this case, such as an emergency or public necessity, which could justify breaching a contractual obligation. Furthermore, he pointed out that allowing governmental entities to break their contracts would create uncertainty and instability in financial markets because investors would not be able to rely on these agreements' enforceability. This unpredictability could potentially discourage investment and hinder economic growth. Thus, Justice Stone disagreed with the majority's ruling due to its potential negative implications for contract law and economic stability.