What is the test for applying the doctrine of law of the case against the rule of the former decision?

At Section 751 of the Article it is stated that "It has sometimes been held that the rule of the former decision must be applied, although in the interval between the two decisions the law in question has been changed by a controlling decision in another case." There is, however, authority ostensibly to the contrary. For example, in the case of City of Seattle v. Puget Sound Power and Light Company, 15 F.2d 794 (9th Cir. 1926) it was said that the "overwhelming weight of authority" is in favor of the application of the doctrine of law of the case, "unless between the two decisions there has been some change in the law by legislative enactment or judicial decision, which the present court is bound to follow." Id. at 795. (Underline added.)

The better view, in my opinion, has been stated as follows: