In the case of Erhardt v. Schroeder (1894), the U.S Supreme Court dealt with a dispute over property rights and inheritance laws. The plaintiff, Erhardt, was an heir to a large estate in Germany but had become a naturalized American citizen. Upon his relative's death, he claimed his share of the inheritance under German law which allowed non-resident foreigners to inherit property if their home country provided reciprocal rights for Germans. However, Schroeder contested this claim arguing that since Erhardt had renounced his German citizenship upon becoming an American citizen, he could not claim any inheritance under German law. The court ruled in favor of Schroeder stating that while it is true that international treaties should be respected and upheld by all parties involved; however they do not supersede or alter domestic laws regarding nationality and citizenship unless explicitly stated otherwise within those treaties themselves. Therefore as per US law at the time which did not recognize dual-citizenship - once someone became a naturalized US citizen they automatically lost their previous nationality along with any associated legal benefits such as inheriting foreign estates.

In the dissenting opinion for Erhardt v. Schroeder, it was argued that the majority's decision to uphold a lower court ruling against Mr. Erhardt was incorrect due to an improper interpretation of bankruptcy law. The dissenting justices believed that Mr. Erhardt should have been allowed to keep certain assets because they were not part of his business operations and therefore should not be considered in his bankruptcy proceedings. They also disagreed with the majority's view on how state laws interacted with federal laws in this case, arguing that state property exemptions should apply even when dealing with federal bankruptcy cases. Furthermore, they felt there was insufficient evidence presented at trial proving fraud on Mr.Erhardts' part which led them to believe he had been unjustly penalized by losing all his properties including personal ones.