In the case of Louisville Trust Company v. Knott in 1903, the U.S Supreme Court dealt with a dispute over bond payments related to railroad construction in Florida. The state had issued bonds to fund railway development but later refused to pay them off, arguing that they were unconstitutional under Florida law. The Louisville Trust Company, which held some of these bonds, sued for payment and won at both district and appellate court levels. However, when it came before the Supreme Court, the decision was reversed on grounds that federal courts should not interfere with states' internal financial matters unless there is clear violation of rights or federal law involved. This ruling established an important precedent limiting federal judicial intervention in state affairs.

In the dissenting opinion for Louisville Trust Company v. Knott, it was argued that the majority's decision to uphold a Florida law taxing bonds held by out-of-state corporations violated both due process and equal protection clauses of the Fourteenth Amendment. The dissenting justices believed that this tax unfairly targeted non-residents who had no political voice or representation in Florida's government, thus violating their rights under the Constitution. They also pointed out inconsistencies in how these taxes were applied, arguing that they were not uniformly enforced across all types of property or individuals. This selective enforcement further underscored their belief that this tax law was unconstitutional as it did not provide equal protection under the law for all citizens and entities involved.