In the case of Southern Railway Company v. St. Louis Hay & Grain Company, 1908, the Supreme Court was asked to determine whether a railway company could be held liable for damages caused by a delay in shipment that resulted from an unforeseen flood. The St. Louis Hay & Grain Company had contracted with the Southern Railway Company to transport goods and claimed that they suffered losses due to delays caused by flooding on the route which prevented timely delivery of their products. The court ruled in favor of the railway company stating that it cannot be held responsible for "acts of God" such as floods or other natural disasters beyond its control which prevent them from fulfilling contractual obligations within agreed timelines.

The dissenting opinion in the case of Southern Railway Company v. St. Louis Hay & Grain Company argued that the majority's decision was inconsistent with previous rulings and failed to properly interpret interstate commerce laws. The dissent contended that a railroad company, acting as a common carrier, should not be allowed to limit its liability for damages caused during transportation unless such limitation is reasonable and just under all circumstances. It further asserted that any agreement between the shipper and carrier regarding limited liability must be explicit, clear, and brought to the attention of the shipper before it can have any legal effect. In this particular case, they believed these conditions were not met; hence they disagreed with absolving Southern Railway from full responsibility for damage incurred by St.Louis Hay & Grain Company’s goods while in transit.