In the 1896 case of Oxley Stave Company v. Butler County, the U.S Supreme Court ruled in favor of Oxley Stave Company. The dispute arose when Butler County, Ohio imposed a tax on Oak staves that were being transported by the company across state lines from Kentucky to Ohio. The company argued that this was an interference with interstate commerce and therefore unconstitutional under Article I, Section 8 of the Constitution which grants Congress exclusive power over such matters. The court agreed with Oxley's argument and held that states cannot impose taxes or regulations on goods merely passing through them en route to another destination as it infringes upon federal authority over interstate commerce.

In the dissenting opinion for Oxley Stave Company v. Butler County, it was argued that the majority's ruling contradicted established principles of contract law and property rights. The dissenting justices contended that a tax lien on a piece of property does not automatically extinguish all other claims to that property, particularly when those claims were made before the tax lien was imposed. They pointed out that in this case, Oxley Stave Company had purchased timber from landowners with an agreement to remove it within a certain period; however, before they could do so, Butler County imposed a tax lien on the land and sold it at auction due to unpaid taxes by previous owners. The new owner then sought to prevent Oxley from removing its timber. The dissenters believed this violated basic fairness and equity as well as legal precedent because Oxley’s right should have been recognized even after change in ownership due to non-payment of taxes.