Virginia v. West Virginia is a significant legal case stemming from the complex historical relationship between the two states following the Civil War. The dispute centers on the financial obligations incurred by Virginia prior to West Virginia's separation in 1863. Virginia sought repayment from West Virginia for approximately one-third of this pre-war debt, based on the proportion of territory lost. In contrast, West Virginia argued it should only be responsible for the debt incurred within its own territory, which amounted to a much smaller figure.

To resolve the disagreement, a special master was appointed and recommended a compromise amount that took into account the value of property at the time of separation while excluding certain types of property. Despite this, West Virginia initially resisted payment, prompting Virginia to seek judicial enforcement. Ultimately, the U.S. Supreme Court, led by Chief Justice Melville W. Fuller, upheld the special master's findings, leading to West Virginia fulfilling its financial obligation—though it took until 1939 to complete payments. This case highlights the legal complexities and fiscal responsibilities that can arise between states, as well as the enduring impact of historical events on contemporary governance.