In the case of Kalb et ux. v. Feuerstein et ux., the Supreme Court ruled on a matter involving bankruptcy and foreclosure proceedings. The Kalbs, who were farmers in debt, filed for bankruptcy under Section 75 of the Bankruptcy Act which provided special protection to indebted farmers by allowing them to propose a plan for paying off their debts over time while keeping their property. However, during this process, they failed to pay rent on leased land owned by the Feuersteins leading them to initiate eviction proceedings in state court where they obtained judgment against the Kalbs. The issue before the Supreme Court was whether these state court eviction proceedings violated an automatic stay provision that is triggered when someone files for bankruptcy - essentially halting all collection efforts against them until their financial affairs are sorted out through bankruptcy procedures. The Supreme Court held that because Section 75 did not explicitly provide an automatic stay provision like other sections of Bankruptcy Act did at that time; therefore it could not be inferred or implied into it. As such, there was no violation and thus upheld Feuersteins' right to proceed with eviction despite ongoing federal bankruptcy proceeding.

In the dissenting opinion for Kalb et ux. v. Feuerstein et ux., it was argued that the majority's decision undermined a fundamental principle of American jurisprudence: that federal courts should not interfere with ongoing state court proceedings unless there is clear evidence of an abuse of power or violation of constitutional rights. The dissenting justices believed that the bankruptcy court had overstepped its bounds by enjoining a state foreclosure proceeding, arguing this action violated principles of comity and federalism. They contended that while Congress has broad powers to establish uniform laws on bankruptcy, these powers do not extend to halting legitimate actions in state courts without just cause. In their view, allowing such interference would disrupt the balance between federal and state judicial systems and could potentially lead to abuses of power by federal courts.