In the 1997 case of California and State Lands Commission v. Deep Sea Research, Inc., et al., the U.S. Supreme Court ruled in favor of Deep Sea Research (DSR), a salvage company that had discovered a sunken ship off the coast of California containing an estimated $1 billion worth of gold. The state claimed ownership over the wreck under its abandoned property laws but DSR argued that federal maritime law should apply instead, which would give them rights to salvage operations and potential ownership over any recovered items. The court agreed with DSR's argument, stating that federal admiralty jurisdiction preempted state law in this matter because it involved a shipwreck located on submerged lands belonging to no particular state or individual. This decision set important precedent for future cases involving underwater treasure hunting and salvage operations.

In the dissenting opinion for California and State Lands Commission v. Deep Sea Research, Inc., Justice Ginsburg disagreed with the majority's interpretation of admiralty jurisdiction and sovereign immunity. She argued that a state should retain its sovereignty over abandoned shipwrecks within its territory until it explicitly relinquishes this right. According to her, federal courts do not have jurisdiction in such cases unless there is an explicit waiver by the state or congressional abrogation of state immunity. She also contended that historical practice supports states' rights to control their submerged lands without interference from federal courts. Therefore, she believed that California had sovereign immunity in this case involving a sunken ship discovered off its coast.