In the 1918 case of Texas & Pacific Railway Company et al. v. Leatherwood, the U.S Supreme Court ruled in favor of the railway company and overturned a lower court's decision that had awarded damages to Mr. Leatherwood for injuries he sustained while working as an employee on one of their trains. The Supreme Court found that there was insufficient evidence to prove negligence on part of the railway company, which was necessary under federal law (the Federal Employers' Liability Act) for Mr. Leatherwood to receive compensation for his injuries from his employer, Texas & Pacific Railway Company.

In the dissenting opinion for Texas & Pacific Railway Company v. Leatherwood, Justice Holmes argued that the court should not have overturned the lower courts' decisions to award damages to Mr. Leatherwood. He believed that there was sufficient evidence presented at trial to support a finding of negligence on part of the railway company and its employees, which directly resulted in Mr. Leatherwood's injuries and subsequent death. Furthermore, he disagreed with majority's interpretation of federal law regarding liability in railroad accidents involving livestock; according to him, it did not absolve railroads from all responsibility but rather placed an additional burden on them to prove they had taken reasonable precautions against such incidents occurring. Therefore, he felt that it was inappropriate for Supreme Court to substitute its judgment for jury’s when facts were disputed or doubtful.