In the case of Louisiana Power & Light Co. v. City of Thibodaux, the U.S Supreme Court ruled in favor of the city's right to exercise eminent domain over a private utility company. The City of Thibodaux, Louisiana sought to acquire assets from Louisiana Power & Light Company (LP&L) for public use under its power of eminent domain granted by state law. LP&L contested this action and requested that federal courts decide on whether it was constitutional or not due to their interstate operations which could potentially be affected by such acquisition. However, the Supreme Court held that federal courts should abstain from deciding cases involving complex issues related to state laws unless there is no adequate remedy available at state level or if there are exceptional circumstances present - neither were found in this case hence they remanded it back to state court for decision.

In the dissenting opinion for Louisiana Power & Light Co. v. City of Thibodaux, Justice Frankfurter argued that the majority's decision to allow federal courts to abstain from deciding cases involving state law issues was a departure from established principles of federal jurisdiction. He maintained that once a case is properly before a federal court, it has an obligation to decide it and cannot simply defer judgment because the issue might also be decided in state court. He contended that such deferral undermines confidence in the judiciary and could lead to inconsistent rulings between different jurisdictions. Furthermore, he expressed concern about potential delays caused by this practice as well as its impact on parties who have chosen to litigate their claims in federal court.