In the 1953 case of Jacobson v. New York, New Haven & Hartford Railroad Co., the U.S. Supreme Court ruled on a dispute involving damages for wrongful death under Connecticut law. The plaintiff, Mrs. Jacobson, was seeking compensation following her husband's death in a railroad accident while he was working as an employee of the defendant company. The main issue at hand was whether or not federal courts should apply state laws regarding interest on damage awards from the date of verdict to judgment when sitting in diversity jurisdiction cases (cases that involve citizens from different states). In its decision, the Supreme Court held that federal common law does not govern such matters and instead directed lower courts to follow state laws concerning post-verdict interest in diversity cases.

In the dissenting opinion for Jacobson v. New York, New Haven & Hartford Railroad Co., Justice Frankfurter argued that the majority's decision was an overreach of judicial power and a misinterpretation of legislative intent. He contended that Congress had not intended to provide a federal remedy for every personal injury caused by railroad negligence when it passed the Federal Employers' Liability Act (FELA). Instead, he believed FELA was designed to address specific issues related to interstate commerce and worker safety in railroads operating across state lines. The justice also criticized the majority's interpretation of "negligence" under FELA as overly broad, arguing this could lead to excessive litigation against railroads and potentially undermine their financial stability. In his view, such matters should be left primarily to state law unless there is clear evidence Congress intended otherwise.