In the case of Newport News and Mississippi Valley Company v. Pace (1894), the U.S. Supreme Court ruled in favor of Pace, a landowner who had sued for damages after his property was flooded due to construction by the railroad company. The court held that even though there were no specific laws prohibiting such actions by railroads at that time, common law principles still applied which protected private property from damage caused by others without compensation. This meant that regardless of whether or not an act is specifically prohibited by statute, if it causes harm to another's property rights then legal recourse can be sought under common law principles protecting those rights.

In the dissenting opinion for Newport News and Mississippi Valley Company v. Pace, 1894, it was argued that the majority's decision to uphold a state law requiring railroad companies to provide separate accommodations for white and black passengers violated both the Commerce Clause of the U.S. Constitution and principles of equal protection under law. The dissent contended that such laws imposed an undue burden on interstate commerce by forcing railroads to maintain separate facilities based solely on race, which could potentially disrupt operations across state lines. Furthermore, they believed these laws were inherently discriminatory in nature as they treated individuals differently based purely on their racial background rather than any legitimate public interest or safety concern.