In the case of Lincoln Gas & Electric Light Company v. City of Lincoln et al., 1918, the U.S Supreme Court ruled in favor of the city. The dispute arose when the City of Lincoln, Nebraska sought to construct its own electricity and gas plant while a private company (Lincoln Gas & Electric Light Company) was already providing these services under an exclusive franchise agreement with the city that had not yet expired. The private company sued on grounds that this action violated their contract rights protected by due process clause in Fourteenth Amendment. However, Justice Mahlon Pitney delivered majority opinion stating that no irreparable damage would be done to plaintiff's property or business if construction began before expiration date as they could still seek compensation for any damages later on through legal channels. Furthermore, he noted that public welfare outweighed potential harm to individual corporation and thus upheld lower court's decision allowing city to proceed with construction.

In the dissenting opinion for Lincoln Gas & Electric Light Company v. City of Lincoln et al., Justice Holmes disagreed with the majority's decision that upheld a city ordinance setting gas rates, which effectively reduced the company's profits. He argued that this was an unconstitutional taking without just compensation as it deprived the company of its property rights in violation of due process under the Fourteenth Amendment. Holmes contended that while municipalities have a right to regulate utilities, they cannot do so in such a way as to destroy or unduly burden those businesses' ability to earn reasonable returns on their investments. The justice believed that if public utility companies were not allowed fair earnings, then private capital would be discouraged from investing in these essential services leading to negative consequences for society at large.