The U.S. Supreme Court case Commonwealth of Virginia v. State of West Virginia in 1913 revolved around a boundary dispute between the two states, which arose after West Virginia seceded from Virginia during the Civil War and became its own state. The primary issue was determining ownership over certain counties along their shared border, specifically Berkeley and Jefferson counties that had voted to join West Virginia but were claimed by both states due to ambiguities in legislation during the war period. The court ruled in favor of West Virginia, stating that it had jurisdiction over these areas because Congress recognized them as part of West Virginia when it admitted the new state into Union in 1863. Furthermore, since residents living there paid taxes to and received benefits from only one government (West Virgina), they effectively belonged to this entity rather than remaining under Virginian control.

In the dissenting opinion for the case Commonwealth of Virginia v. State of West Virginia, Justice Holmes disagreed with the majority's decision to award damages to Virginia. He argued that there was no clear evidence showing West Virginia had agreed to take on a portion of Virginia's debt when it became a separate state during the Civil War. According to him, any such agreement would have been unenforceable due to its creation under duress and coercion amidst wartime conditions. Furthermore, he contended that even if an enforceable contract did exist between both states regarding this matter, it should not be interpreted as obligating West Virginia indefinitely without considering changes in circumstances over time or other relevant factors like population shifts or economic developments since separation.