This Supreme Court case involved a dispute between the New York, Lake Erie and Western Railroad Company and Madison. The Railroad Company had been granted a right-of-way by the state of New York to construct a railroad line through Madison's property. Madison refused to allow the Railroad Company to construct the line, claiming that the right-of-way was invalid. The Railroad Company then sued Madison for damages. The Supreme Court held that the right-of-way was valid and that Madison was liable for damages. The Court reasoned that the right-of-way was granted by the state of New York, and that the state had the power to grant such rights. The Court also held that Madison had no right to interfere with the Railroad Company's use of the right-of-way. The Court's decision established that the state has the power to grant rights-of-way to railroad companies, and that individuals cannot interfere with the use of such rights. This decision has been cited in numerous subsequent cases involving the rights of railroad companies.

In the case of New York, Lake Erie and Western Railroad Company v. Madison, the Supreme Court was tasked with determining whether a railroad company had to pay damages for an accident that occurred on its tracks. The majority opinion held that the railroad company did not have to pay damages because it had taken reasonable steps to ensure safety on its property. Justice Field dissented from this decision, arguing that while there may have been some negligence involved in causing the accident, it was ultimately up to a jury to decide if any liability should be imposed upon the railroad company. He argued further that even if there were no negligence present at all, then still under certain circumstances such as those presented here where an individual is injured due to dangerous conditions created by another party's actions or omissions - they are entitled compensation regardless of fault or lack thereof.