In the 1898 case of St. Louis, Iron Mountain and St. Paul Railway Company v. Paul, the U.S Supreme Court ruled in favor of the railway company against a claim made by Mr. Paul for damages due to an alleged breach of contract related to transportation services provided by the railway company. The court found that there was no evidence proving that any contractual agreement had been violated or breached by the defendant (the railway company). Therefore, it held that Mr.Paul's claims were unfounded and dismissed his suit against them.

In the dissenting opinion for St. Louis, Iron Mountain and St. Paul Railway Company v. Paul, Justice Harlan disagreed with the majority's decision to uphold a lower court ruling that found in favor of Mr. Paul who was injured while working on a train owned by the railway company due to negligence of another employee. He argued that under common law principles, an employer is not liable for injuries sustained by one servant through the negligence of another servant when both are engaged in a common employment related to ordinary business operations unless it can be shown that there was some failure on part of management or if they employed someone incompetent or unfit for their duties which led directly to injury suffered by plaintiff - neither condition being met here according to him.