In the case of Missouri Pacific Railroad Company v. Clarendon Boat Oar Company, Inc., 1921, the Supreme Court was tasked with determining whether a railroad company could be held liable for damages to goods during transit when those goods were improperly packed by the shipper. The Clarendon Boat Oar Company had shipped oars via Missouri Pacific Railroad and upon arrival, many of these oars were found to be damaged due to improper packing. The court ruled in favor of the railroad company stating that they are not responsible for damage caused by inadequate packaging unless it is clearly stated in their contract or tariff schedules that they will assume such responsibility regardless of how items are packaged. This ruling established an important precedent regarding liability during shipping and transport.

The dissenting opinion in the case of Missouri Pacific Railroad Company v. Clarendon Boat Oar Company, Inc., argued that the majority's decision to hold the railroad company liable for damages was incorrect. The dissent contended that there was no evidence presented at trial showing negligence on part of the railroad company and thus, it should not be held responsible for any damage caused to Clarendon's shipment of oars. They believed that under common law principles, a carrier is not an insurer against all possible harm but only liable when they fail to exercise reasonable care and skill in handling goods entrusted to them by shippers. In this case, according to their view, there were no facts indicating such failure from Missouri Pacific Railroad Company’s side.