In the case of John Baizley Iron Works et al. v. Span, 1929, the U.S Supreme Court was tasked with determining whether a state court's decision could be reviewed by federal courts if it involved an interpretation of a federal statute. The dispute originated from an accident that occurred during construction work on a ship in Pennsylvania where Span, an employee of John Baizley Iron Works, was injured due to negligence and sought compensation under the Longshoremen's and Harbor Workers' Compensation Act - a federal law providing for workers' compensation for certain maritime employees. The Pennsylvania State Workmen’s Compensation Board denied his claim stating that he wasn't working on navigable waters at the time of injury hence not covered under this act but rather by state laws. The case reached the U.S Supreme Court which held that while generally states have jurisdiction over their own decisions involving interpretations of federal statutes; when those decisions involve substantial constitutional questions or important issues regarding construction or application of such statutes as in this case, they are subject to review by Federal Courts.

In the dissenting opinion for John Baizley Iron Works et al. v. Span, it was argued that the majority's decision to uphold a Pennsylvania law requiring employers to compensate employees injured on the job even if negligence could not be proven was an overreach of state power and violated constitutional principles of due process. The dissent contended that this law unfairly shifted all risk onto employers without considering their degree of fault or responsibility in workplace accidents. It also raised concerns about potential abuse by workers who might exploit this system for financial gain without having to prove employer negligence or misconduct as traditionally required under tort law principles. Furthermore, they believed such laws would discourage businesses from operating within states with similar legislation due to increased costs and liabilities associated with these no-fault compensation schemes.