In the United States v. Callahan Walker Construction Co., 1942, the Supreme Court dealt with a dispute over payment for work done on a government project during World War II. The construction company had entered into an agreement to build facilities at an Army base but later claimed that it incurred additional costs due to changes in plans and specifications by the government which were not covered in their contract. They sought compensation for these extra expenses from the federal government under provisions of their contract allowing adjustments for such changes. However, they failed to provide written notice of these claims within thirty days as required by their contract terms. The U.S Government argued that this failure should bar any recovery while Callahan Walker contended that actual knowledge of its claim by responsible officials waived this requirement. The Supreme Court sided with the construction company, ruling that strict compliance with contractual stipulations was not always necessary when dealing with claims against the Government and where there is no prejudice shown towards it because of non-compliance.

The dissenting opinion in the United States v. Callahan Walker Construction Co., 1942, argued that the majority's decision was inconsistent with previous rulings and interpretations of federal law. The dissenting justices believed that the government should not be allowed to sue for damages under a contract unless it had first made an effort to resolve disputes through administrative channels as stipulated by the contract itself. They contended that allowing such lawsuits would undermine contractual agreements and disrupt established procedures for dispute resolution, leading to unnecessary litigation. Furthermore, they expressed concern about potential abuse of power by government officials who might use this ruling as leverage in negotiations or even as a means of coercion against contractors.