In the 1895 case of McCarty v. Lehigh Valley Railroad Company, the U.S Supreme Court ruled in favor of the defendant, Lehigh Valley Railroad Company. The plaintiff, McCarty, had sued for damages after a shipment of peaches was delayed and subsequently spoiled en route from Georgia to New York due to negligence by the railroad company's employees. However, there was an existing contract between both parties that exempted the railroad company from liability for any damage caused by delays during transportation unless it could be proven that they were negligent or at fault. Despite evidence showing negligence on part of some employees which led to delay in delivery and subsequent spoilage of peaches; since this clause existed within their agreement prior to shipping goods - it provided protection against such claims made by McCarty. Therefore, even though there might have been instances where carelessness occurred leading up to loss incurred by plaintiff; because he agreed upon these terms before entering into business with them - his claim was dismissed as per contractual obligations set forth initially.

The dissenting opinion in the McCarty v. Lehigh Valley Railroad Company case argued that the railroad company should not be held liable for damages caused by a fire started by sparks from one of its locomotives. The dissent maintained that railroads are not insurers against all possible damage, but rather only responsible for harm resulting from negligence or misconduct on their part. In this case, there was no evidence to suggest any such negligence or misconduct; therefore, holding them accountable would set a dangerous precedent and place an undue burden on railway companies. Furthermore, it was pointed out that fires caused by locomotive sparks were common occurrences at the time and could hardly be considered unexpected or extraordinary events warranting compensation under existing laws governing liability.