The Supreme Court case Stoehr v. Wallace, 1920, revolved around a dispute between stockholder Mr. Stoehr and the company Stoehr & Sons Inc., along with its directors. The issue at hand was whether or not the defendants had violated their fiduciary duties by selling corporate assets without obtaining adequate consideration in return, thereby causing financial harm to the corporation and its shareholders. Mr. Stoehr claimed that this action constituted fraud against him as a shareholder of the company. However, it was found that there were no grounds for such allegations since all transactions were conducted fairly and openly with full knowledge of all parties involved including other shareholders who did not object to these actions at any point during or after they took place. Therefore, despite Mr.Stoehrs' claims of fraudulent behavior on part of his fellow directors leading to personal loss as well as damage to overall corporate value; he could not provide sufficient evidence supporting his accusations which led to dismissal of his suit by court ruling in favor of defendants i.e., Wallace et al.

The dissenting opinion in the case of Stoehr v. Wallace argued that the majority's decision to uphold a tax on corporate stock dividends was incorrect. The dissenters believed that this tax constituted double taxation, as corporations had already paid taxes on their profits before distributing them as dividends. They also felt that it violated principles of fairness and equity by disproportionately affecting shareholders who relied on dividend income for their livelihoods. Furthermore, they disagreed with the majority's interpretation of relevant statutes and constitutional provisions, arguing instead for a more literal reading which would exclude stock dividends from taxable income altogether. Despite these objections however, the minority justices were unable to sway their colleagues' views or alter the outcome of this landmark case.