In the case of Lake Superior Ship Canal, Railway and Iron Company v. Cunningham (1894), the U.S Supreme Court ruled in favor of Cunningham, affirming that he was entitled to damages for breach of contract by the company. The dispute arose when Cunningham had contracted with the company to transport iron ore from his mines via their canal system at a fixed rate per ton. However, after some time, the company increased its rates without notice or agreement from Cunningham which led him to sue for damages due to this unilateral increase in cost. The court held that such an action constituted a breach of contract as it violated agreed terms between both parties and thus upheld lower courts' decisions awarding damages to Mr.Cunningham.

In the dissenting opinion for Lake Superior Ship Canal, Railway and Iron Company v. Cunningham, Justice Brewer argued that the majority's decision was inconsistent with previous rulings of the court. He contended that a corporation is not an individual under law but rather a separate legal entity created by its charter. Therefore, he believed it should be treated as such in all matters pertaining to its rights and liabilities. Furthermore, he disagreed with the majority's interpretation of Michigan state laws regarding corporations' ability to hold lands beyond their corporate limits for purposes other than those expressly stated in their charters. He asserted that these laws did not prohibit corporations from holding such lands if they were necessary for carrying out their business operations or protecting their interests - which was precisely what Lake Superior Ship Canal, Railway and Iron Company had done in this case according to him.