In the case of Western Union Telegraph Company v. Poston, 1920, the Supreme Court ruled in favor of Western Union Telegraph Company. The dispute arose when a telegraph message was sent from Georgia to South Carolina with an incorrect address due to negligence on part of the company's employee. As a result, delivery was delayed and caused financial loss for Mr. Poston who sued for damages in South Carolina court which ruled against Western Union. The Supreme Court reversed this decision stating that under federal law (the Interstate Commerce Act), lawsuits regarding such matters must be filed where the act or omission occurred - in this case Georgia not South Carolina as it had been done by Mr.Poston originally. Therefore, while acknowledging that there may have been negligence on part of its employee causing harm to Mr.Poston , they held that jurisdictionally his claim could not proceed because he had filed suit in wrong state.

In the dissenting opinion for Western Union Telegraph Company v. Poston, it was argued that the majority's decision to hold Western Union liable for damages due to a delayed telegram delivery was incorrect. The dissenting justices believed that there were insufficient grounds to prove negligence on part of the telegraph company as they had adhered to their standard procedures and protocols in handling and delivering messages. They also pointed out that there are inherent risks associated with any form of communication, including potential delays or errors which could not be entirely eliminated even with utmost care and diligence. Therefore, holding a company responsible for such unforeseeable circumstances would set an unfair precedent and place an undue burden on businesses providing similar services.