In the case of Berkowitz v. United States, the central issue was whether the government could be held liable for the actions of its employees. The plaintiff, Berkowitz, argued that the government was responsible for the negligence of its workers, which led to damages. The court ultimately ruled in favor of the United States, stating that the government had immunity under the Federal Tort Claims Act. This decision clarified the limits of government liability in cases involving the actions of federal employees, emphasizing the protections afforded to the government in such situations.