In the case of Liverpool and London and Globe Insurance Company v. Kearney in 1900, the U.S Supreme Court ruled that a state could not impose taxes on insurance companies based outside its jurisdiction if they did not have an office or agents operating within the state. The court held that such taxation was unconstitutional as it violated both due process rights under the Fourteenth Amendment and interstate commerce regulations. This ruling came after Kearney, a tax collector from California, attempted to collect taxes from Liverpool & London & Globe Insurance Co., which was incorporated in England but had insured properties located in California without having any offices or agents there.

In the dissenting opinion for Liverpool and London and Globe Insurance Company v. Kearney, Justice Harlan disagreed with the majority's decision to uphold a state law that allowed an insurance company to be sued in any county where it did business. He argued that this violated the Fourteenth Amendment's due process clause because it could potentially subject companies to unfair trials if they were forced to defend themselves in distant counties where they had little presence or influence. Furthermore, he contended that such laws could discourage businesses from expanding into new areas for fear of being subjected to lawsuits there. In his view, these potential consequences outweighed any benefits gained by making it easier for plaintiffs to sue corporations.