In the 1912 case of Pedersen v. Delaware, Lackawanna & Western Railroad Company, the U.S. Supreme Court ruled in favor of the railroad company. The plaintiff, Mr. Pedersen, was a worker who suffered injuries while working on an interstate train that was temporarily stationary for repairs within New York state lines but not engaged in interstate commerce at that moment. He sought compensation under federal law - specifically the Employers' Liability Act (1908), which held employers liable for employees' injuries sustained during interstate commerce work. The court found that since Pedersen's injury occurred when he wasn't actively involved in interstate transportation or directly facilitating it at that time and place; his claim didn't fall under this act's jurisdiction despite being employed by an entity generally engaged in such activities. This decision established a precedent limiting federal liability to cases where workers are injured while actually participating or directly aiding in ongoing interstate commerce operations rather than merely being employed by entities conducting such business overall.

In the dissenting opinion for Pedersen v. Delaware, Lackawanna & Western Railroad Company, it was argued that the majority's decision to hold the railroad company liable for damages suffered by an employee who was injured while working on a car located on a side track went against established legal principles. The dissenting justices contended that under common law and federal statutes, employers were not responsible for providing absolute safety to their employees but only had a duty of care in maintaining reasonably safe conditions. They believed that this standard had been met by the railroad company since they provided adequate lighting and warnings about potential dangers associated with moving trains. Furthermore, they pointed out that there was no evidence showing negligence or misconduct from supervisors or other workers which could have contributed to the accident. Therefore, according to them, holding employers accountable for accidents caused solely by employees' own mistakes would set an unfair precedent and place undue burden on businesses.