In the case of Toxaway Hotel Company v. Smathers & Co., the U.S. Supreme Court was tasked with determining whether a North Carolina state court had jurisdiction over an out-of-state corporation in relation to a contract dispute. The Toxaway Hotel Company, incorporated in South Carolina, entered into a contract with Smathers & Co., based in North Carolina for construction work on property located within that state. A disagreement arose regarding payment and Smathers sued Toxaway in North Carolina courts. The key issue before the Supreme Court was whether or not it violated due process rights under the Fourteenth Amendment for an out-of-state company to be sued within another state's courts without its consent or presence there beyond business transactions related to said lawsuit. The court ruled that as long as corporations conduct continuous and systematic business operations within a given state, they are subject to its laws and judicial system even if their incorporation is elsewhere; thus affirming lower court rulings favoring Smathers & Co.. This decision set important precedent concerning jurisdictional authority over corporations operating across multiple states.

The dissenting opinion in the case of Toxaway Hotel Company v. Smathers & Co., 1909, argued that the majority's decision to uphold a lower court ruling against Toxaway was incorrect. The dissenting justices believed that there were significant errors made during the trial process which had unfairly prejudiced the jury against Toxaway. They contended that these errors should have been grounds for reversal and remand for a new trial, rather than upholding an unjust verdict. Furthermore, they disagreed with the majority's interpretation of certain legal principles related to contract law and damages, arguing instead for a more nuanced understanding based on established precedents.