In the case of Skaneateles Water Works Company v. Skaneateles in 1901, the U.S Supreme Court ruled on a dispute between a private water company and the village it served. The court held that when a municipality grants an exclusive franchise to provide water service, it cannot later establish its own competing system without compensating the original provider for its investment. The Village of Skaneateles had granted an exclusive franchise to the Skaneateles Water Works Company but later decided to create its own municipal water supply system. The Court found this action violated constitutional protections against taking property without just compensation because it effectively rendered worthless any investments made by the company under assumption they would be protected by their contract with the village.

In the dissenting opinion for Skaneateles Water Works Company v. Skaneateles, it was argued that the majority's decision to uphold a lower court ruling in favor of the village of Skaneateles infringed upon private property rights. The dissenting justices contended that by allowing the village to take over and operate waterworks initially established and maintained by a private company without providing just compensation, they were essentially condoning government seizure of private assets. They further asserted this action violated principles enshrined in both state law and federal constitution which protect against unlawful taking or damaging of one’s property without due process or fair remuneration. This view held that such actions could set dangerous precedents for future cases involving public utilities owned by private entities, potentially undermining confidence in legal protections afforded to business investments.