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Missouri Pacific Railway Company v. Chicago and Alton Railroad Company was a Supreme Court case that was decided in 1915. The case involved a dispute between two railroad companies over the right to use a certain stretch of track. The Missouri Pacific Railway Company (MPRC) had a contract with the Chicago and Alton Railroad Company (C&A) to use a certain stretch of track in exchange for a fee. However, C&A later decided to revoke the contract and refused to allow MPRC to use the track. MPRC then sued C&A, claiming that the contract was still valid and that C&A had violated it by refusing to allow MPRC to use the track. The Supreme Court ultimately sided with MPRC, ruling that C&A had violated the contract by refusing to allow MPRC to use the track. The Court held that the contract was still valid and that C&A had breached it by refusing to allow MPRC to use the track. The Court also held that MPRC was entitled to damages for the breach of contract. This case established the principle that contracts are binding and that parties who breach them can be held liable for damages.
In the dissenting opinion of Missouri Pacific Railway Company v. Chicago and Alton Railroad Company, Justice Harlan argued that the majority's decision was wrongfully based on a misapplication of law. He believed that the Interstate Commerce Commission (ICC) had not exceeded its authority in ordering an increase in rates for certain railroads, as it was within their power to do so under existing laws and regulations. Furthermore, he noted that Congress had granted broad powers to the ICC to regulate interstate commerce and ensure fair competition between carriers; thus, any action taken by them should be respected unless there is clear evidence of abuse or overreach. In this case, Justice Harlan found no such evidence present and concluded that the majority's ruling would have far-reaching implications for future cases involving similar issues before federal courts.