The U.S. Supreme Court case Louisville & Nashville Railroad Company v. Central Iron & Coal Company in 1923 revolved around a dispute over freight charges for the transportation of coal by the railroad company from mines owned by the coal company to various destinations. The main issue was whether or not a contract existed between both parties that set specific rates for this service, as claimed by Central Iron & Coal Co., and if so, whether it had been breached by Louisville & Nashville Railroad Co., who charged higher rates than those allegedly agreed upon. The court ruled in favor of the railroad company, stating that no such contract existed because there was insufficient evidence to prove its existence beyond reasonable doubt. Furthermore, even if such an agreement did exist informally or verbally (as suggested), it would still be unenforceable due to Interstate Commerce Act regulations which require all contracts related to interstate commerce transport services must be made in writing and filed with the Interstate Commerce Commission.

The dissenting opinion in the case of Louisville & Nashville Railroad Company v. Central Iron & Coal Company argued that the majority's decision to uphold a lower court ruling, which found the railroad company liable for damages due to delayed delivery of coal shipments, was incorrect. The dissent contended that there were no contractual stipulations regarding specific delivery times and thus it was unreasonable to hold the railroad company accountable for delays caused by unforeseen circumstances such as labor strikes or equipment failures. Furthermore, they asserted that this ruling could set a dangerous precedent where businesses could be held responsible for uncontrollable factors beyond their control. They believed this would lead to an increase in litigation and potentially harm economic growth by creating an environment of uncertainty and risk for businesses engaged in transportation contracts.