In Railroad Company v. Blair, the Supreme Court of the United States was asked to decide whether a railroad company was liable for damages caused by a fire that had been started by sparks from one of its locomotives. The Court held that the railroad company was liable for the damages, as it had been negligent in allowing the sparks to escape from its locomotive. The Court reasoned that the railroad company had a duty to take reasonable precautions to prevent sparks from its locomotives from causing fires. The Court noted that the railroad company had failed to take such precautions, and thus was liable for the damages caused by the fire. The Court also held that the railroad company was not liable for any damages caused by the fire that were not foreseeable. The Court reasoned that the railroad company could not be held liable for damages that it could not have reasonably anticipated. In conclusion, the Court held that the railroad company was liable for the damages caused by the fire, as it had been negligent in allowing sparks from its locomotive to escape and cause the fire. The Court also held that the railroad company was not liable for any damages that were not foreseeable.

Justice Field delivered the dissenting opinion in Railroad Company v. Blair, arguing that the majority's decision was contrary to established precedent and would lead to a dangerous expansion of corporate power. He argued that corporations were not natural persons and therefore could not be considered citizens for purposes of diversity jurisdiction under Article III of the Constitution. Furthermore, he noted that Congress had never intended for corporations to have such rights when it passed legislation granting them certain privileges; rather, those privileges were meant only as a means by which individuals could pursue their own interests through collective action without sacrificing their individual rights as citizens. Finally, Justice Field warned against allowing corporations too much freedom from state control because they are "artificial bodies created by law" with no inherent right or authority beyond what is granted them by statute or common law.