In the case of West, Secretary of the Interior v. Standard Oil Company (1928), the U.S Supreme Court ruled in favor of Standard Oil Company. The dispute arose when oil was discovered on land leased by Standard Oil from a Native American tribe under an agreement approved by the Department of Interior. The government argued that it had not consented to this lease and sought to recover royalties from oil production for itself rather than allowing them to go to Standard Oil or the tribe. However, Justice Oliver Wendell Holmes Jr., writing for a unanimous court, held that once Congress had authorized these leases and delegated its approval power over them to administrative officials within the Department of Interior, those officials could not later claim their own lack of consent as grounds for invalidating such agreements.

In the dissenting opinion for West, Secretary of the Interior v. Standard Oil Company, Justice Holmes argued that the government should not be allowed to sue a private company for damages under common law in this case. He believed that Congress had already provided a specific remedy through legislation and thus it was inappropriate to apply general principles of tort law. Furthermore, he contended that if such suits were permitted by government departments without explicit authorization from Congress, there would be no limit on potential claims against companies or individuals which could lead to an abuse of power. This view emphasizes strict adherence to legislative intent and cautions against judicial overreach into matters properly addressed by lawmakers.