In the case of Seaboard Air Line Railway v. Renn, 1915, the U.S Supreme Court was asked to determine whether a state could impose taxes on an interstate railway company for property located and business conducted outside its jurisdiction. The plaintiff, Seaboard Air Line Railway Company argued that North Carolina's taxation violated the Commerce Clause of the Constitution as it interfered with interstate commerce by taxing assets and operations beyond its borders. However, North Carolina contended that their tax assessment included only those properties within their boundaries. The court ruled in favor of Seaboard Air Line Railway stating that while states have power to tax businesses operating within their territory, they cannot extend this authority to include out-of-state property or activities related to interstate commerce. This decision upheld principles limiting state powers over interstate commerce under federal law.

In the dissenting opinion for Seaboard Air Line Railway v. Renn, Justice Hughes disagreed with the majority's decision to uphold a state law that allowed an injured employee to sue their employer in any county where the injury occurred. He argued that this law violated due process rights by forcing companies to defend themselves in potentially distant and unfamiliar jurisdictions. Furthermore, he contended that it was unfair for businesses operating across multiple counties or states to be subject to such unpredictable legal circumstances. This unpredictability could lead them into courts far removed from their principal place of business or even from where they have significant operations, which would impose undue hardship on these entities. Therefore, according to Justice Hughes' dissenting view, upholding such laws infringes upon constitutional protections provided under due process clause.