In the 1893 case of Missouri, Kansas and Texas Railway Company v. Roberts, the U.S Supreme Court ruled in favor of the railway company. The dispute arose when Mr. Roberts sued for damages after his cattle were killed on an unfenced portion of the railroad's track, which ran through unenclosed land in Indian Territory (now Oklahoma). According to a federal statute at that time, railroads operating within territories had to fence their tracks or be held liable for any livestock deaths caused by trains. However, this law did not apply to states where fencing was not required under state laws. The court determined that since Indian Territory was not technically a "territory" as defined by Congress but rather lands held in trust for Native American tribes with limited self-governance rights granted by treaties with the United States government; it could not be considered a territory subject to federal jurisdiction like other organized territories such as Arizona or New Mexico would have been during this period. Therefore, because there was no specific treaty provision requiring fences around railways running through these areas nor any local tribal law mandating such measures; it concluded that federal fencing requirements did not apply here and thus reversed lower courts' decisions awarding damages against Missouri-Kansas-Texas Railroad.

In the dissenting opinion for the case of Missouri, Kansas and Texas Railway Company v. Roberts, it was argued that the court majority had erred in its interpretation of liability under common law principles. The dissent held that a railway company should not be liable for damages to livestock caused by trains unless negligence can be proven on their part. They contended that railroads are not insurers against all accidents but only those which occur due to their failure in duty or carelessness. This view contrasted with the majority's ruling which imposed an absolute liability on railroad companies for any damage done by their locomotives irrespective of whether they were negligent or not.