The U.S. Supreme Court case Erie Railroad Company v. People of the State of New York in 1913 revolved around a dispute between the Erie Railroad Company and the state of New York over taxation laws. The railroad company argued that certain tax assessments imposed by New York were unconstitutional, as they violated both due process and equal protection clauses under the Fourteenth Amendment. However, after reviewing all relevant facts and arguments presented by both parties, the Supreme Court ruled against Erie Railroad Company's claims. The court held that there was no violation to either clause because it found no evidence suggesting an arbitrary or unreasonable action on part of state authorities while imposing these taxes; hence their actions did not infringe upon any constitutional rights enjoyed by corporations like Erie Railroad Co., nor did they discriminate unfairly among different entities subject to similar taxes within its jurisdiction. This decision reinforced states' powers to levy reasonable taxes on corporations operating within their borders without violating federal constitution provisions about due process or equal protection for those entities being taxed.

In the dissenting opinion for Erie Railroad Company v. People of the State of New York, Justice Holmes disagreed with the majority's ruling that a state law requiring railroads to provide full crews on trains was unconstitutional. He argued that it is not within the purview of courts to determine whether such laws are wise or unwise as long as they do not violate any constitutional provisions. He further stated that there was no evidence presented in this case showing an abuse of power by New York in passing this legislation and therefore, he saw no reason why it should be struck down. The justice emphasized his belief in judicial restraint and deference to legislative decisions unless they clearly infringe upon constitutionally protected rights or powers.