In the 1912 case of National Safe Deposit, Savings and Trust Company of the District of Columbia v. Hibbs, the Supreme Court ruled on a dispute over property rights. The plaintiff was a trust company that had been given power to sell certain real estate by its owner, who later died without revoking this power or transferring it to his heirs. The defendant was an individual claiming ownership through inheritance from the deceased owner's wife. The court held that because no action had been taken by either party during their lifetime regarding these powers, they remained in effect after death and could be exercised by successors or assigns unless explicitly revoked in writing as required under DC law at the time. Therefore, any sale made under such authority would be valid against all parties with notice thereof including subsequent purchasers for value without notice.

In the dissenting opinion for National Safe Deposit, Savings and Trust Company of the District of Columbia v. Hibbs, Justice Holmes disagreed with the majority's interpretation of a clause in an insurance policy contract. He argued that it was not reasonable to assume that a person would be aware they were violating their insurance policy by simply moving items from one location to another within their own home without notifying their insurer. Furthermore, he believed that such minor actions should not result in forfeiture of coverage under any circumstances. The justice also criticized the majority for failing to consider whether or not there had been substantial compliance with other terms and conditions stipulated in the contract before making its decision on this particular point.