In the case of Richards v. Washington Terminal Company, the Supreme Court ruled in favor of Washington Terminal Company. The plaintiff, Mr. Richards was a property owner who sued for damages caused by smoke and gas from trains operated by the defendant near his residence in Washington D.C.. He claimed that this constituted an invasion of his property rights and sought compensation under nuisance law principles. However, the court held that while it recognized potential harm to Mr.Richards' enjoyment of his property due to noise and pollution from passing trains, these were considered incidental consequences inherent in urban living where railroads are necessary for public convenience. Therefore, they did not constitute a legal nuisance or provide grounds for recovery unless there was negligence on part of the company which wasn't proven here.

In the dissenting opinion for Richards v. Washington Terminal Company, Justice Holmes disagreed with the majority's decision to hold the defendant liable for damages caused by a fire that spread from its property. He argued that there was insufficient evidence to prove negligence on part of the defendant and pointed out that fires could occur even in well-managed properties due to unforeseen circumstances or accidents. Furthermore, he contended that it was unjustifiable to impose liability without clear proof of negligence as it would set a dangerous precedent where companies could be held accountable for damages beyond their control. Thus, he believed this ruling unfairly penalized businesses and disrupted established principles of tort law which require proof of fault before imposing liability.