In the case of Cincinnati, New Orleans & Texas Pacific Railway Company v. Rankin in 1915, the U.S. Supreme Court ruled on a dispute involving railway company negligence and employee injury compensation. The plaintiff, Rankin, was an employee of the defendant railway company who suffered injuries while working due to alleged negligence by his employer. He sought damages for his injuries under Kentucky law which allowed employees to sue employers for workplace accidents caused by their carelessness or neglect. The main issue before the court was whether federal or state law should apply since interstate commerce was involved as it pertained to a railroad worker injured while performing duties related to interstate transportation. The Supreme Court held that despite being engaged in interstate commerce at the time of his accident, Rankin's claim fell within Kentucky’s jurisdiction because he had been hired there and his work primarily took place within its borders. Therefore, he could seek redress under state laws governing employer liability for workplace accidents rather than federal laws regulating railroads' responsibilities towards their workers.

In the dissenting opinion for Cincinnati, New Orleans & Texas Pacific Railway Company v. Rankin, Justice Holmes disagreed with the majority's ruling that a railroad company could be held liable for injuries sustained by an employee who was not provided with safe equipment to perform his job. He argued that the plaintiff knew of and accepted these risks when he took on this employment role. Furthermore, he contended that it is unreasonable to expect employers to provide absolute safety in inherently dangerous industries such as railroads. The responsibility should lie with employees to take precautions against known dangers associated with their work environment or occupation rather than placing all liability on employers.