In the case of Delaware and Hudson Company v. Albany and Susquehanna Railroad Company, 1908, the U.S Supreme Court was tasked with determining whether a lease agreement between two railroad companies could be terminated due to non-payment of rent. The Delaware and Hudson Company had leased tracks from the Albany and Susquehanna Railroad for an agreed-upon annual rental fee but failed to make payments as stipulated in their contract. In response, Albany sought to terminate the lease agreement on grounds of breach of contract. However, Delaware argued that they were unable to pay because they were financially insolvent at that time. The court ruled in favor of Albany stating that financial insolvency did not excuse non-payment under a contractual obligation unless explicitly stated within said contract's terms or conditions. Therefore, it upheld Albany’s right to terminate its leasing arrangement with Delaware due to failure by latter party in fulfilling its payment obligations as per their mutual agreement.

In the dissenting opinion for Delaware and Hudson Company v. Albany and Susquehanna Railroad Company, it was argued that the majority's decision to uphold a lower court ruling in favor of Albany and Susquehanna Railroad Company was incorrect. The dissenting justices believed that Delaware and Hudson had not violated any laws by purchasing stock in another company with the intent to control its operations, as this is a common business practice. They also disagreed with the majority's interpretation of New York state law regarding corporate powers, arguing that it did not prohibit such actions unless explicitly stated otherwise. Furthermore, they contended that even if Delaware and Hudson’s actions were deemed illegal under state law, federal courts should not have jurisdiction over such matters because they involve internal affairs of corporations which are typically governed by state laws.