In the case of Philadelphia Company et al. v. Dipple et al., 1940, the U.S Supreme Court was tasked with deciding on matters relating to corporate reorganization and stockholder rights under Section 77B of the Bankruptcy Act. The Philadelphia Company had proposed a plan for reorganization which would significantly reduce its outstanding bonds' value while preserving common stock's value at par. A group of bondholders objected to this plan, arguing that it unfairly discriminated against them in favor of common shareholders who were also company directors or officers. The court ruled in favor of the bondholders, stating that such discrimination was not permissible under Section 77B unless justified by compelling circumstances - which were absent in this case. It held that fairness and equity required all interests within a class (here, creditors) be treated alike unless there is reasonable ground for differentiation; mere convenience or preference does not suffice as justification. This ruling established an important precedent regarding equitable treatment during corporate restructuring processes: any deviation from equal treatment must have valid reasons beyond simple expediency or personal interest.

In the dissenting opinion for Philadelphia Company et al. v. Dipple et al., Justice Black argued that the majority's decision to uphold a Pennsylvania law, which allowed public utilities to pass on gross receipts taxes directly to consumers, was inconsistent with previous Court rulings and violated principles of fairness. He contended that such laws essentially permitted corporations to shift their tax burdens onto customers without any corresponding benefits or services in return. Furthermore, he believed this practice disproportionately affected poorer citizens who were less able to absorb these additional costs compared with wealthier individuals or businesses who could more easily afford them. Justice Black also expressed concern about potential abuses by unscrupulous companies seeking unjust enrichment at the expense of unsuspecting consumers under the guise of complying with state taxation laws.