Emory v. Grenough was a case heard by the United States Supreme Court in 1797. The dispute arose when William Emory, an officer of the United States Navy, sued John Grenough for failing to pay him wages owed from his service aboard a naval vessel during the Revolutionary War. Emory argued that he had been promised payment and that Grenough had failed to fulfill this promise despite repeated requests for payment over several years. The court found in favor of Emory, ruling that he was entitled to receive all unpaid wages due under his contract with Grenough as well as interest on those payments since they were overdue. This decision established precedent regarding contracts between individuals and government officers or agents; it also set forth guidelines for determining damages when such contracts are breached or not fulfilled according to their terms.

In Emory v. Grenough, the Supreme Court was asked to decide whether a state court had jurisdiction over a case involving citizens of different states. The majority opinion held that the state court did have jurisdiction and could proceed with the case. However, Justice Paterson dissented from this ruling on two grounds: firstly, he argued that it would be unconstitutional for one state to exercise authority over another; secondly, he argued that Congress should have exclusive power in cases between citizens of different states as provided by Article III of the Constitution. In conclusion, Justice Paterson believed that only Congress had authority in such matters and not individual states or their courts.