In the 1931 case of Chesapeake & Ohio Railway Co. v. Kuhn, the U.S Supreme Court ruled in favor of the railway company, overturning a decision by the Kentucky Court of Appeals that had awarded damages to Kuhn for injuries sustained when he was struck by one of their trains. The court held that there was insufficient evidence to prove negligence on part of the railway company and therefore it could not be held liable for Kuhn's injuries. The court also noted that under Kentucky law, if an individual voluntarily places themselves in a position where they are exposed to danger from passing trains and is injured as a result, they cannot claim damages unless it can be shown conclusively that their injury resulted from some negligent act or omission on part of railroad employees.

In the dissenting opinion for Chesapeake & Ohio Railway Co. v. Kuhn, Justice Stone argued that the majority's decision was inconsistent with previous rulings and principles of law regarding property rights and due process. He contended that a state legislature cannot arbitrarily interfere with private contracts or take away property without just compensation under the guise of its police power. In this case, he believed that Kentucky had done so by passing a statute requiring railroads to maintain side tracks at coal mines even if they were no longer economically viable or necessary for operations as per their contract agreements with mine owners. According to Justice Stone, such an act amounted to an unconstitutional taking of property because it forced railroads to bear public burdens which should be borne by society as a whole.