In the case of Wabash Railroad Company v. Adelbert College of the Western Reserve University, 1907, the U.S Supreme Court ruled in favor of Adelbert College. The dispute arose when a train owned by Wabash Railroad Company derailed and crashed into one of Adelbert's buildings causing significant damage. The railroad company argued that they were not liable for damages because their charter limited liability to cases where negligence could be proven. However, it was found that an employee had failed to properly secure a switch on the tracks which led directly to the accident - this constituted negligence according to Ohio state law at that time. Therefore, despite arguments from Wabash claiming federal laws should supersede state regulations in this matter due to interstate commerce implications, it was determined by Justice David Brewer that there was no conflict between federal and state laws regarding railroads' responsibility for accidents caused by their own negligence; hence upholding lower court decisions awarding damages payable by Wabash Railroad Company.

The dissenting opinion in the case of Wabash Railroad Company v. Adelbert College of the Western Reserve University argued that the majority's decision was inconsistent with previous court rulings and failed to consider important factors. The dissenters believed that a railroad company should be held liable for damages caused by its negligence, even if it had not been directly involved in causing those damages. They also disagreed with the majority's interpretation of Ohio state law, arguing that it did allow for such liability under certain circumstances. Furthermore, they contended that public policy considerations supported their position because holding companies accountable for their negligence would encourage them to take greater care in conducting their operations and thus help prevent future accidents from occurring.