In the 1931 case Champlin Refining Co. v. Corporation Commission of Oklahoma, the U.S. Supreme Court ruled in favor of Champlin Refining Company, stating that an order by the Oklahoma Corporation Commission was unconstitutional because it violated due process rights under the Fourteenth Amendment. The commission had ordered oil producers to limit their production as a means to prevent waste and protect property rights; however, they failed to provide notice or hearing for those affected by this decision - including Champlin Refining Company who challenged this order on constitutional grounds. The court held that such regulatory action without proper notification and opportunity for hearing infringed upon companies' property rights without due process of law.

In the dissenting opinion for Champlin Refining Co. v. Corporation Commission of Oklahoma, Justice Stone argued that the majority's decision to strike down an Oklahoma law regulating oil production was a violation of states' rights and overstepped federal authority. He contended that it is within a state's power to regulate its natural resources as long as it does not interfere with interstate commerce or violate any other constitutional provision. In this case, he believed that there was no evidence showing such interference or violation; therefore, the law should have been upheld. Furthermore, Justice Stone criticized the majority for substituting their judgment on economic policy for that of state lawmakers without clear constitutional grounds to do so.