In the 1892 case of Derby v. Thompson, the United States Supreme Court addressed a dispute over land ownership in Utah. The plaintiff, Derby, claimed that he had acquired title to certain lands under an act of Congress granting lands for railroad purposes. However, before his claim was confirmed by patent from the government, defendant Thompson had obtained possession and made valuable improvements on it. When Derby sued to recover possession and damages for trespassing after receiving his patent confirmation from the government, Thompson argued that he should be compensated for these improvements if forced to surrender possession. The Supreme Court ruled in favor of Thompson stating that while legal title may have been with Derby due to Congressional grant; equitable rights were also important considerations in such cases where significant investments were made by another party acting in good faith without knowledge of conflicting claims or interests (bona fide purchaser). Therefore it held that when deciding who has superior right between two innocent parties - one with legal title but delayed assertion and other having only possessory interest but who improved property significantly - equity favors latter unless former can compensate him fully.

In the dissenting opinion for Derby v. Thompson, Justice Brewer argued that the majority's decision to uphold a state law taxing out-of-state corporations more heavily than in-state ones violated the Commerce Clause of the U.S. Constitution. He contended that this clause was designed to prevent states from discriminating against interstate commerce and imposing burdensome taxes on businesses operating across state lines. In his view, allowing such discriminatory taxation would undermine national unity by encouraging economic protectionism at a state level and fostering hostility between states competing for business investment. Furthermore, he believed it could lead to retaliation from other states and escalate into an economically damaging trade war within the country itself.