The Alexandria Canal Company brought a case against Francis Swann to the Supreme Court. The company had been granted a charter by Congress in 1833, which allowed them to construct and maintain a canal from the Potomac River at Georgetown to Alexandria. In 1836, Swann purchased land along the route of the proposed canal and built warehouses on it. He then refused access for construction of the canal, claiming that he owned all rights over his property due to an earlier grant from Virginia's legislature. The Supreme Court ruled in favor of Swann, stating that since Congress did not specifically mention any right or power over private property when granting their charter they could not take away those rights without compensation as stated by law. This ruling established an important precedent regarding state versus federal authority with regards to private property ownership within states' borders.

In this case, the Alexandria Canal Company (plaintiff) argued that Francis Swann (defendant) had trespassed on their property by cutting down trees and removing timber. The Supreme Court of Virginia held in favor of the defendant, finding that he was not liable for trespass because his actions were done with a good faith belief that he owned the land. The plaintiff appealed to the U.S. Supreme Court, which affirmed the decision of Virginia's court and found in favor of Swann due to his honest mistake about ownership rights over the land at issue. Justice McLean wrote a dissenting opinion arguing that although it is true Swann acted without malice or bad intent when taking possession of what he believed was his own property, this did not excuse him from liability for trespass since it would be unfair to allow someone who has wrongfully taken another’s property to keep it simply because they made an honest mistake as to its ownership status.