In the 1915 case of Menasha Paper Company v. Chicago & Northwestern Railway Company, the Supreme Court was tasked with determining whether a railway company could be held liable for damages to goods during transit due to negligence or misconduct. The Menasha Paper Company had shipped paper via the Chicago & Northwestern Railway and claimed that some of it arrived damaged due to improper handling by railway employees. The court ruled in favor of the railway company, stating that under federal law (the Carmack Amendment), a carrier is not automatically responsible for damage unless it can be proven that they were negligent or engaged in misconduct which caused said damage. In this instance, there was no evidence presented proving such negligence or misconduct on part of the railroad company's employees.

The dissenting opinion in the case of Menasha Paper Company v. Chicago & Northwestern Railway Company argued that the majority's decision was inconsistent with previous rulings and failed to consider important aspects of the case. The dissenters believed that a contract between two parties should be upheld unless it is proven to be unreasonable or discriminatory, which they did not believe had been adequately demonstrated in this instance. They also felt that there was insufficient evidence to support claims of unjust enrichment on behalf of the railway company, as well as concerns about potential negative impacts on commerce due to increased uncertainty around contracts. Furthermore, they disagreed with how much weight was given by the majority towards public interest considerations over private contractual rights.