In the 1978 case of United States v. 564.54 Acres of Land, More or Less, Situated in Monroe and Pike Counties, Pennsylvania et al., the U.S Supreme Court was faced with a dispute over land condemnation for public use by the government under eminent domain laws. The federal government sought to acquire private property for the creation of Tocks Island Dam project along Delaware River but encountered resistance from local landowners who disagreed on compensation amounts offered by the government based on its appraisal value. The court ruled that when determining "just compensation" in eminent domain cases, potential future uses should not be considered if they are too speculative or uncertain; only current market value is relevant at time of taking possession by government authority. This decision effectively upheld lower courts' rulings favoring fair market valuation method rather than considering possible future development potentials which could inflate property values unjustly.

In the dissenting opinion for this case, Justice Stevens argued that the majority's decision to allow a government agency to acquire private property without paying just compensation was in violation of the Fifth Amendment. He contended that when an agency acquires land through condemnation proceedings and then leases it back to its original owner, it is essentially taking possession of the property without providing fair market value compensation. This, he believed, constituted a misuse of eminent domain powers by allowing agencies to circumvent constitutional requirements for just compensation. Furthermore, he expressed concern about potential abuses if such practices were allowed unchecked. In his view, this could lead government agencies acquiring more lands than necessary under pretextual public uses and leasing them back at below-market rates - effectively profiting from their power of eminent domain while depriving citizens of their rightful property rights.