The U.S. Supreme Court case William Danzer & Company, Inc. v. Gulf & Ship Island Railroad Company in 1924 revolved around a dispute over the transportation of lumber by rail and its subsequent damage during transit due to alleged negligence on part of the railroad company. The plaintiff, William Danzer & Co., claimed that they had suffered financial losses as their lumber was not delivered in good condition because it wasn't properly protected from weather elements by the defendant, Gulf & Ship Island Railroad Company while being transported across states. However, the court ruled in favor of the defendant stating that under federal law at that time (the Carmack Amendment), a shipper must provide explicit instructions for special handling or protection if required; otherwise, common carriers like railroads are only obligated to transport goods with reasonable care and diligence but not responsible for any natural damages caused during transit such as those caused by weather conditions.

In the dissenting opinion for William Danzer & Company, Inc. v. Gulf & Ship Island Railroad Company, Justice McReynolds expressed his disagreement with the majority's decision to hold Gulf and Ship Island Railroad liable for damages incurred by William Danzer & Co due to a delay in shipment of goods. He argued that there was no breach of contract as alleged because the railroad company had not guaranteed an exact delivery date but only promised reasonable dispatch which is subject to unforeseen circumstances such as weather conditions or mechanical failures. Furthermore, he contended that it was unreasonable for Danzer & Co., who were experienced merchants, not to have insured their goods against possible losses from delays in transit given they knew about potential risks associated with shipping during winter months.