In the case of Palmer et al., Trustees v. Hoffman, Administrator (1942), the U.S. Supreme Court ruled that a railroad company could not be held liable for damages resulting from a car-train collision at an unguarded crossing in which two people died. The court found that while federal law required railroads to maintain safety devices at crossings, it did not create liability on their part for accidents occurring where such devices were absent or non-functional unless there was evidence of negligence by the railroad company itself. In this particular case, no such negligence was proven and thus, despite tragic circumstances surrounding the accident, legal responsibility could not be assigned to the railroad under existing laws.

In the dissenting opinion for Palmer et al., Trustees, v. Hoffman, Administrator (1942), Justice Black argued that the majority's decision was inconsistent with previous rulings of the Court and could potentially undermine public confidence in federal courts. He contended that there was no reason to exclude evidence from a railroad company just because it had been prepared in anticipation of litigation. The fact that such records were routinely kept by railroads as part of their normal business operations should have made them admissible under federal law, according to Justice Black. He also pointed out inconsistencies between this ruling and other cases where similar types of evidence were admitted without question. Furthermore, he expressed concern about potential bias against corporations implied by the majority’s decision which might lead people to believe that they cannot get a fair trial in federal court if they are sued by an individual.