In the case of Boston and Albany Railroad Company v. O'Reilly in 1894, the U.S Supreme Court ruled on a dispute involving property rights and damages. The plaintiff, O'Reilly, owned land adjacent to tracks operated by the Boston & Albany Railroad Company. He claimed that smoke, sparks and cinders from passing trains had damaged his property - specifically his fruit trees - over several years. In response to this claim for compensation made by O'Reilly against them for causing damage to his orchard due to their operations, the railroad company argued that they were not liable as they were operating within their legal rights under Massachusetts state law which allowed railroads to emit such substances during normal operation without being held accountable for incidental damages caused thereby. The court sided with O’Reilly stating that even though there was no physical invasion of his property (trespass), he still suffered a substantial interference with its use and enjoyment (nuisance). Therefore it was decided that despite having statutory authority permitting certain actions or emissions does not necessarily protect one from liability if those actions cause harm or nuisance towards others' properties.

In the dissenting opinion for Boston and Albany Railroad Company v. O'Reilly, Justice Brewer argued that the majority's decision to uphold a Massachusetts law requiring railroads to provide equal accommodations for all passengers was an overreach of state power. He contended that while states have broad powers to regulate businesses within their borders, they cannot interfere with interstate commerce or violate constitutional protections of property rights. In this case, he believed that forcing a railroad company operating across multiple states to change its practices in one state would necessarily affect its operations in other states, thus infringing upon Congress' exclusive authority over interstate commerce. Furthermore, he maintained that the law violated the railroad's property rights by dictating how it must use its own equipment and facilities without providing just compensation or due process of law.