In the case of Illinois Grand Trunk Railway Company v. Wade, 1890, the U.S Supreme Court ruled in favor of defendant Wade. The dispute arose when a train owned by the plaintiff railway company collided with a wagon driven by Wade at a railroad crossing causing him injuries and damaging his property. The railway company argued that it was not liable for damages as there were no signals or warnings to indicate an approaching train due to negligence on part of its employees which they claimed was beyond their control. However, the court held that under common law principles, employers are responsible for any negligent acts committed by their employees during employment hours even if those actions were contrary to instructions given by management. Therefore, despite arguing lack of direct involvement in creating hazardous conditions leading up to accident and claiming exemption from liability based on employee misconduct defense; these arguments were dismissed as irrelevant since employer is still legally accountable for harm caused through employee's carelessness while performing job duties.

In the dissenting opinion for Illinois Grand Trunk Railway Company v. Wade, it was argued that the majority's decision to uphold a state law requiring railway companies to fence their tracks and compensate farmers for livestock killed on unfenced sections of track unfairly burdened interstate commerce. The dissenting justices believed that this issue should be regulated at a federal level rather than by individual states, as railroads were instrumental in facilitating interstate trade and communication. They contended that allowing each state to impose its own regulations could lead to inconsistencies and inefficiencies detrimental to national interests. Furthermore, they expressed concern over potential abuses of such laws by local residents seeking unjust enrichment at the expense of railroad companies.