In Leavenworth, Lawrence, and Galveston Railroad Company v. United States, the Supreme Court was asked to decide whether the United States had the right to take possession of a railroad owned by the Leavenworth, Lawrence, and Galveston Railroad Company. The railroad had been built with the aid of a loan from the United States, and the government had taken possession of the railroad after the company failed to make payments on the loan. The company argued that the government had no right to take possession of the railroad without first obtaining a court order. The Supreme Court held that the government had the right to take possession of the railroad without a court order. The Court reasoned that the government had a right to take possession of the railroad in order to protect its interests in the loan. The Court also noted that the government had acted in good faith in taking possession of the railroad and had not acted in an arbitrary or oppressive manner. The Court concluded that the government had acted within its rights in taking possession of the railroad.

In Leavenworth, Lawrence, and Galveston Railroad Company v. United States, the Supreme Court was asked to decide whether a railroad company could be held liable for damages caused by its negligence in failing to properly maintain its tracks. The majority opinion found that the railroad company was not liable because it had acted with reasonable care and diligence in maintaining its tracks. However, Justice Field dissented from this decision on the grounds that there is no reason why a corporation should not be held responsible for any injury or damage resulting from their negligence when they are engaged in an activity which affects public safety. He argued that corporations should have to pay compensation if they fail to exercise due care and caution while performing activities which may cause harm or danger to others. Furthermore, he stated that allowing such companies immunity would encourage them to act negligently without fear of consequence since they would know they will never have to pay out any damages even if someone were injured as a result of their actions.