In the case of Chicago, Milwaukee & St. Paul Railway Company v. Kennedy in 1913, the U.S Supreme Court ruled on a dispute involving land rights and railroad construction. The plaintiff, Kennedy, owned land that was bisected by railway tracks laid down by the defendant company without his permission or any legal right to do so. The court had to decide whether Kennedy could claim compensation for damages caused by this unauthorized use of his property or if he had lost that right due to not taking action against it sooner (a concept known as 'laches'). In its decision, the Supreme Court sided with Kennedy stating that laches did not apply because there was no statutory limitation period for bringing such claims under federal law at that time. Therefore, despite many years having passed since the railway's initial trespassing onto his property occurred; Mr.Kennedy still retained his right to seek compensation from them.

In the dissenting opinion for the case of Chicago, Milwaukee & St. Paul Railway Company v. Kennedy, Justice Holmes disagreed with the majority's decision to hold the railway company liable for damages resulting from a fire caused by sparks emitted from one of its locomotives. He argued that there was no evidence proving negligence on part of the railway company and therefore it should not be held responsible for unforeseeable accidents such as this one. Furthermore, he contended that holding companies accountable in such instances would set a dangerous precedent where businesses could potentially be held liable for any damage occurring within their vicinity without proof of direct causation or fault.