In the case of American Trading Co. v. H.E. Heacock Co., the U.S Supreme Court dealt with a dispute over whether or not an agreement between two parties was enforceable under Philippine law, as it involved both domestic and foreign elements. The American Trading Company had entered into a contract with H.E Heacock to sell goods in Manila, but later argued that this contract violated local laws which prohibited foreigners from engaging in retail trade within the Philippines without special permission from authorities. The court ruled against American Trading Company, stating that while there were indeed restrictions on foreign entities conducting business within the country, these did not apply to contracts made outside of its jurisdiction and intended for execution abroad - such as their agreement with H.E Heacock. Therefore, despite being a foreign entity itself and having no license to operate locally at all times relevant to this case; since their deal was struck overseas (in New York), it fell outside of Philippine regulatory reach according to principles of international comity recognized by US courts. This decision clarified how cross-border commercial agreements should be interpreted when they involve jurisdictions with differing legal systems or regulations – emphasizing respect for sovereignty and non-interference in each other's internal affairs.

In the dissenting opinion for American Trading Co. v. H.E. Heacock Co., Justice Stone argued that the majority's decision to dismiss the case on jurisdictional grounds was incorrect and overly restrictive, as it failed to consider broader principles of equity and justice in international commerce disputes. He contended that a U.S.-based corporation should be able to sue another U.S.-based corporation in federal court over an alleged breach of contract occurring abroad, even if both parties conducted business primarily outside of America at the time of dispute. According to Justice Stone, dismissing such cases could potentially leave plaintiffs without any legal recourse or protection against unfair practices by other corporations operating overseas under American law.