The US military commandeered and then destroyed Caltex’s facilities and inventory in the face of advancing Japanese military forces during WWII. After the war, Ps demanded compensation for all of the property which had been used or destroyed by the Army. The Government paid for the petroleum stocks and transportation equipment which were either used or destroyed by the Army, but it refused to compensate respondents for the destruction of the Pandacan terminal facilities. After the war, Ps demanded compensation for all of the property which had been used or destroyed by the Army. The Government paid for the petroleum stocks and transportation equipment which were either used or destroyed by the Army, but it refused to compensate respondents for the destruction of the Pandacan terminal facilities. Claiming a constitutional right under the Fifth Amendment to just compensation for these terminal facilities, Ps sued in the Court of Claims. Recovery was allowed. The United States appealed.

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