In the case of Public Service Company of Northern Illinois v. Corboy, Drainage Commissioner of the Calumet Ditch (1918), the Supreme Court ruled in favor of Public Service Company. The company had been ordered by a lower court to remove its gas pipes from a public drainage ditch, which it argued was an unreasonable demand that would cause significant financial loss and inconvenience for customers who relied on their service. The Supreme Court agreed with this argument and reversed the lower court's decision, ruling that while local authorities have power over public utilities within their jurisdiction, they must exercise this power reasonably and not impose undue hardship or expense on utility companies without sufficient justification. This case established important legal precedent regarding how far local governments can go in regulating public utilities.

In the dissenting opinion for Public Service Company of Northern Illinois v. Corboy, it was argued that the majority's decision to uphold an injunction against a public utility company interfered with state regulatory power over local affairs. The dissenting justices believed that the case should have been decided based on principles of federalism and deference to state authority rather than on interpretations of property rights or contract law. They contended that states should be allowed to regulate their own utilities without interference from federal courts unless there is clear evidence of constitutional violation or abuse of power. In this particular case, they did not believe such evidence existed and thus disagreed with the majority's ruling in favor of the plaintiff utility company.