In the United States ex rel. Tennessee Valley Authority v. Welch case of 1945, the Supreme Court ruled in favor of the Tennessee Valley Authority (TVA), a federal corporation that had been sued by private landowners for flooding their lands during dam construction. The plaintiffs argued that TVA's actions constituted an illegal taking without just compensation under the Fifth Amendment and sought to recover damages from both TVA and its officers individually. However, citing earlier precedents, Justice Frankfurter delivered a unanimous opinion stating that as long as Congress has authorized such activities within constitutional limits, federal agents are immune from personal liability for carrying out those duties - even if they result in damage to private property. Furthermore, he clarified that any claims against TVA itself should be directed towards the U.S government rather than individual officers since it was acting on behalf of Congress' authority.

In the dissenting opinion for United States ex rel. Tennessee Valley Authority v. Welch, Justice Frankfurter disagreed with the majority's decision to allow a federal agency (the TVA) to exercise eminent domain over state-owned lands without explicit Congressional approval. He argued that this interpretation of the law was an unwarranted expansion of federal power and could lead to potential abuses in future cases. Furthermore, he contended that it undermined states' rights and sovereignty by allowing a federal entity to seize their property without clear legislative authority or due process protections typically afforded under eminent domain laws. He believed that such actions should only be permitted when expressly authorized by Congress, not implied through broad interpretations of statutory language or executive powers.