In the case of Western Union Telegraph Company v. Taggart in 1895, the U.S Supreme Court ruled in favor of Western Union Telegraph Company. The dispute arose when Mr. Taggart sued Western Union for damages after they failed to deliver a telegram he sent regarding a business transaction, which resulted in financial loss for him. However, on the back of the telegram form that Mr. Taggart filled out was a disclaimer stating that unless certain conditions were met by the sender (including paying an additional fee), Western Union would not be held liable for mistakes or delays in transmission or delivery, nor for any errors made by telegraph operators. The court found that this disclaimer constituted part of their contract with Mr.Taggart and since he did not fulfill these conditions - specifically paying an extra charge to ensure immediate delivery - he could not claim damages from them due to non-delivery as per their agreement terms.

In the dissenting opinion for Western Union Telegraph Company v. Taggart, it was argued that the majority's decision to hold a telegraph company liable for mistakes made in transmission and delivery of an unrepeated message is unjustifiable. The dissenting justices believed that there should be no liability on part of the telegraph company as long as they acted in good faith and without negligence. They contended that when customers choose cheaper, non-repeated messages over more expensive repeated ones (which are checked for accuracy), they assume responsibility for any errors or delays. Therefore, according to this view, if a customer wants assurance against such risks, he should pay extra fees associated with repeated messages which offer greater security against inaccuracies or delays due to rechecking procedures involved therein.