In the case of Missouri Pacific Railway Company v. McGrew Coal Company, 1920, the Supreme Court was tasked with determining whether a railway company could be held liable for damages caused by its failure to provide cars as per an agreement with a coal company. The McGrew Coal Company had entered into an agreement with the Missouri Pacific Railway whereby it would receive a certain number of empty railcars each day for transporting coal. However, due to various reasons including labor strikes and car shortages, the railway failed to fulfill this obligation on several occasions resulting in financial losses for McGrew. The court ruled in favor of Missouri Pacific Railway stating that while there was indeed an agreement between both parties, it did not constitute absolute liability on part of the railroad company because they were not common carriers in relation to their own cars but only when carrying goods for others; thus they were subject only to ordinary negligence standards rather than strict liability rules applicable under common carrier laws.

The dissenting opinion in the case of Missouri Pacific Railway Company v. McGrew Coal Company argued that the majority's decision to uphold a state law requiring railroads to furnish cars for coal companies was incorrect. The dissenters believed this ruling interfered with interstate commerce, which is under federal jurisdiction according to the Constitution. They contended that such laws could potentially disrupt and burden interstate trade by allowing states to impose their own rules on railway operations, thereby undermining national uniformity in railroad regulation. Furthermore, they asserted that it was not within a state’s power to dictate how railways should allocate resources or conduct business operations as long as these did not infringe upon public rights or safety measures.