In the case of Louisville and Nashville Railroad Company v. Western Union Telegraph Company in 1914, the Supreme Court ruled on a dispute between two companies over telegraph lines. The railroad company had allowed the telegraph company to install its lines along their tracks but later wanted them removed so they could use that space for their own purposes. The court held that while railroads have a right to remove structures interfering with operations, this did not apply here as there was no evidence of interference or inconvenience caused by the presence of telegraph poles and wires. Furthermore, it was noted that both parties benefited from an arrangement where messages were sent free for each other's benefit; hence it would be unjust if one party unilaterally terminated this mutually beneficial relationship without any valid reason or compensation to another party.

In the dissenting opinion for Louisville and Nashville Railroad Company v. Western Union Telegraph Company, Justice Holmes disagreed with the majority's decision that Western Union had a right to maintain its telegraph lines on the railroad company's property without compensation. He argued that when two corporations make an agreement, it should be interpreted as any other contract would be - in light of what both parties reasonably expected at the time they entered into it. In this case, he believed that neither party could have anticipated or intended for Western Union to retain rights over land sold by the railroad company decades later. Furthermore, he contended that even if such a right was implied in their original agreement, it should not extend indefinitely but rather expire after a reasonable period of time has passed since its creation. Thus, according to Justice Holmes' interpretation of their contract and principles of equity and fairness between businesses entities under common law rules governing contracts and real property rights; The court erred by ruling in favor of Western Union.