In the case of Young Men's Christian Association (YMCA) of Columbus, Ohio v. Davis et al., 1923, the Supreme Court ruled in favor of YMCA. The dispute arose when a group of African American citizens were denied access to use facilities at the YMCA due to their race and subsequently sued for damages under federal civil rights laws. However, it was determined that these laws did not apply as they only covered instances where state action was involved in enforcing racial discrimination - which wasn't applicable here since YMCA is a private organization and acted independently without any state enforcement or encouragement. Therefore, while acknowledging that such discriminatory practices by private organizations are morally wrong and socially harmful, the court held that they do not violate federal law unless supported by state action.

In the dissenting opinion for YMCA of Columbus, Ohio v. Davis et al., Justice Holmes argued that the court should not have ruled in favor of Davis because it was an overreach to apply public accommodation laws to a private organization like the YMCA. He contended that while discrimination is generally unacceptable, private organizations should be allowed some discretion in choosing their members without interference from courts or legislatures. Furthermore, he believed this ruling could potentially open up other private clubs and associations to similar lawsuits which would infringe on their rights as well. Thus, he disagreed with majority's interpretation of law and its application in this case.