In the case of Flanagan v. Federal Coal Company, 1924, the United States Supreme Court ruled in favor of the coal company. The plaintiff, Flanagan, was an employee who had been injured while working for the defendant and sought compensation under a Tennessee statute that held employers liable for injuries sustained by employees due to negligence or violation of safety regulations. However, it was found that at the time of his injury he was engaged in interstate commerce which fell under federal jurisdiction rather than state law. Therefore, his claim should have been made under federal laws governing worker's compensation instead. This decision highlighted how federal law takes precedence over state law when dealing with matters related to interstate commerce.

In the dissenting opinion for Flanagan v. Federal Coal Company, it was argued that the plaintiff should be allowed to recover damages from his employer due to negligence leading to injury. The justice disagreed with the majority's interpretation of a federal statute which they believed barred such recovery. He contended that this law was intended only as a minimum standard of safety and not meant to limit an employee's right to sue for additional compensation if injured due to their employer’s negligence. Furthermore, he asserted that denying employees this right would undermine incentives for employers to maintain safe working conditions beyond what is required by law, ultimately putting workers at greater risk.