In the 1895 case of Western Union Telegraph Company v. James, the Supreme Court ruled in favor of Western Union, reversing a decision made by the Kansas Supreme Court. The dispute arose when Mrs. James sent a telegram via Western Union to her husband informing him about their son's critical health condition but Mr. James received it after his son had already passed away due to delay caused by negligence on part of telegraph company employees. He sued for damages for mental anguish and suffering he experienced because he could not be with his dying child due to late delivery of message. The U.S Supreme court held that while there was indeed negligence on part of the company’s employee, they were only liable for actual damage suffered as a result from non-receipt or misdelivery which did not include compensation for mental distress or emotional pain under contract law principles applicable at that time.

In the dissenting opinion for Western Union Telegraph Company v. James, Justice Harlan argued that the majority's decision was inconsistent with previous rulings of the court and violated principles of federalism. He contended that state laws regulating telegraph companies were not necessarily in conflict with federal law or interstate commerce regulations, as long as they did not interfere with these entities' ability to fulfill their obligations under national legislation. In this case, he believed that Kansas' requirement for telegraph companies to deliver messages promptly and impartially within its borders did not obstruct Western Union's duties under federal law but merely supplemented them by providing additional protections for consumers at a local level. Thus, he disagreed with the majority’s view that such state-level regulation was unconstitutional.