In the case of Choctaw, Oklahoma and Gulf R.R. Co. v. McDade in 1903, the United States Supreme Court ruled on a dispute involving land rights between a railroad company and an individual named McDade. The railroad company had been granted certain lands by Congress to build their railway line through Indian Territory (now Oklahoma). However, some of these lands were already occupied by individuals like McDade under leases from tribal authorities or members thereof before the grant was made to the railway company. The court held that such prior occupancy did not prevent or limit the right of possession given to railroads by Congress for construction purposes as long as it is necessary for operating its road effectively and efficiently even if it causes inconvenience or loss to those who have settled upon them under such leases without any legal title thereto.

In the dissenting opinion for CHOCTAW, OKLAHOMA AND GULF R. R. CO. v. MCDADE, Justice Harlan disagreed with the majority's ruling that a railroad company could not be held liable for damages caused by sparks from its locomotives setting fire to nearby property unless negligence was proven on their part. He argued that railroads should be considered inherently dangerous and thus subject to strict liability rules regardless of whether they were negligent or not in causing harm to others' properties due to fires sparked by their operations. According to him, it is unreasonable and unjustifiable burden on landowners who suffer losses from such fires ignited by passing trains without any fault of theirs while providing no compensation because they couldn't prove negligence against the railway companies which are better equipped financially and legally than individual landowners in dealing with such issues.