In the case of Missouri, Kansas & Texas Railway Company v. Harriman in 1912, the U.S Supreme Court ruled on a dispute involving railway companies and land rights. The Missouri, Kansas & Texas Railway Company (MKT) had been granted certain lands by Congress to aid in its construction but later sold some of these lands to Harriman. However, MKT failed to complete the railroad within the time specified by Congress and as a result, it was argued that they forfeited their right to those lands which were then claimed by other railroads under subsequent grants from Congress. The court held that although MKT did not fulfill its obligation within the stipulated time frame, this did not automatically mean forfeiture of their land grant rights without an explicit declaration from Congress or judicial decree stating so. Therefore, since no such action had been taken before MKT sold part of these lands to Harriman; he obtained good title against claims made by other railways who sought possession based on subsequent Congressional grants.

In the dissenting opinion for the case of Missouri, Kansas & Texas Railway Company v. Harriman, Justice Holmes disagreed with the majority's decision that a railway company could be held liable for damages caused by sparks from its locomotive. He argued that there was no negligence on part of the railway company as it had taken all reasonable precautions to prevent such an incident. According to him, accidents like these are inevitable in industries involving some risk and companies should not be penalized unless they have been negligent or reckless in their operations. He also pointed out that holding companies responsible for unavoidable accidents would discourage industrial growth and innovation because of fear of litigation.