In the 1936 case of Villa et al. v. Van Schaick, Superintendent of Insurance of New York, the U.S Supreme Court ruled in favor of Van Schaick and upheld a New York law that allowed for the liquidation of foreign insurance companies operating within its borders if they were insolvent or unable to meet their obligations. The plaintiffs, policyholders from Mexico who held policies with an insolvent Mexican insurance company doing business in New York, argued that this law violated both due process and equal protection clauses under the Fourteenth Amendment as it treated foreign corporations differently than domestic ones. However, the court found no violation since states have broad powers to regulate businesses within their jurisdiction including those involving interstate commerce or international affairs unless there is explicit federal preemption.

In the dissenting opinion for Villa et al. v. Van Schaick, it was argued that the majority's decision to uphold New York's law requiring foreign corporations to consent to service of process as a condition of doing business in the state violated due process rights under the Fourteenth Amendment. The dissent contended that this requirement amounted to an unconstitutional deprivation of property without due process because it forced foreign corporations into accepting conditions they would not otherwise agree with just so they could operate within New York State. They believed such a mandate went beyond what was necessary or appropriate for ensuring jurisdiction over these entities and instead constituted an unfair burden on interstate commerce, thereby infringing upon federal authority.