In the 1934 case of Old Company's Lehigh, Inc. v. Meeker, Receiver et al., the U.S Supreme Court was tasked with deciding on a dispute involving coal mining rights and royalties in Pennsylvania. The plaintiff, Old Company's Leigh High Inc., had leased its coal lands to another company which later went bankrupt and failed to pay rent or royalties as agreed upon in their contract. As a result, Old Company sought to terminate the lease agreement due to breach of contract but faced opposition from Meeker who was appointed receiver for the bankrupt company by lower courts. The main issue before the court was whether federal bankruptcy laws could prevent state law from allowing termination of leases when lessees fail to meet contractual obligations such as payment of rents or royalties. In its decision, however, the Supreme Court ruled that federal bankruptcy laws did not supersede state property laws; thus upholding Old Company’s right under Pennsylvania law to cancel leases if tenants defaulted on payments.

In the dissenting opinion for Old Company's Lehigh, Inc. v. Meeker, Receiver et al., Justice Stone argued that the majority had overstepped its bounds by interfering with state law and policy in a way that was not warranted by the Constitution or federal laws. He contended that Pennsylvania’s coal mining regulations were designed to protect public health and safety, as well as conserve resources - objectives which he believed should be respected under principles of federalism unless they directly conflicted with specific constitutional provisions or acts of Congress. Furthermore, he disagreed with the majority's interpretation of due process rights under the Fourteenth Amendment; instead arguing that these rights did not prevent states from regulating property use in ways deemed necessary for public welfare. In his view, it was inappropriate for courts to substitute their judgment on economic matters for those made by legislatures who are more equipped to make such decisions based on local conditions and needs.