This Supreme Court case involved the President, Directors, and Company of the Bank of the United States (the bank) and The United States against James B. Beverly and Jane his wife, William Ramsay and Elizabeth his wife, Hamilton Peter and James Peter (heirs of David Peter), deceased, as well as George P. At issue was a debt owed to the bank by David Peter who had passed away without settling it. His heirs argued that they were not liable for this debt because it was incurred before their father's death; however, The United States contended that under Virginia law at the time any debts due from a decedent should be paid out of their estate first before being distributed among heirs or legatees. After considering both sides' arguments in light of applicable laws on inheritance rights in Virginia at that time period, The Supreme Court ultimately ruled in favor of The United States holding that all creditors must be satisfied prior to distribution among heirs or legatees according to state law governing such matters.

In the dissenting opinion of The President, Directors, and Company of the Bank of the United States v. James B. Beverly et al., Justice Catron argued that a state court had no jurisdiction to issue an injunction against a federal bank in order to prevent it from collecting debts due under its charter granted by Congress. He further stated that this was because such matters were exclusively within the purview of federal courts as they are established by Congress for this purpose alone. Furthermore, he asserted that any attempt by a state court to interfere with or enjoin proceedings instituted in a federal court would be unconstitutional and void since it would amount to interference with judicial power vested solely in those courts created pursuant to Article III of the Constitution.