In the case of Kammerer et al. v. Kroeger, Superintendent of Building and Loan Associations of Ohio, et al., 1936, the U.S Supreme Court was tasked with determining whether a state law that allowed for the reorganization and recapitalization of building and loan associations without shareholder consent violated due process rights under the Fourteenth Amendment. The appellants were shareholders in an association undergoing such a restructuring who argued their property interests were being infringed upon without proper notice or opportunity to be heard. However, the court ruled against them stating that this procedure did not violate their constitutional rights as it served a legitimate public interest by protecting depositors' funds during times when many financial institutions were failing due to economic depression conditions at that time.

The dissenting opinion in the case of Kammerer et al. v. Kroeger, Superintendent of Building and Loan Associations of Ohio, et al., argued that the majority's decision was a departure from established principles regarding state regulation over corporations. The dissenters believed that Ohio had not exceeded its authority by imposing regulations on building and loan associations operating within its borders, even those incorporated under federal law. They contended that these companies were subject to both federal and state laws when conducting business within a particular state's jurisdiction. Therefore, they saw no conflict between the Federal Home Owners' Loan Act of 1933 and Ohio’s regulatory statutes governing such institutions as long as there is no direct conflict with any specific provision in the federal act itself.