United States Supreme Court Cases & Opinions

U.S. Supreme Court

Omnia Commercial Co., Inc. v. United States, 261 U.S. 502 (1923)

Omnia Commercial Company, Inc. v. United States

No. 229

Argued March 1, 1923

Decided April 9, 1923

261 U.S. 502

Syllabus

1. A valuable contract right is property within the meaning of the Fifth Amendment, and, when taken for public use, must be paid for by the government; but when it is lost or injured as a consequence of lawful governmental action not a taking, the law affords no remedy. P. 261 U. S. 508.

2. When the government, for war purposes, requisitioned the entire production of a steel manufacturer, rendering impossible and unlawful of performance an outstanding contract between the manufacturer and a customer, the customer's rights were not taken by the government, but frustrated by its lawful action. P. 261 U. S. 511.

56 Ct.Clms. 392 affirmed.

Appeal from a judgment of the Court of Claims dismissing a petition on demurrer.

Page 261 U. S. 507