In Evans v. Phillips, the Supreme Court of the United States ruled that a state court had no jurisdiction to hear an action brought by a citizen of another state against a resident of its own. The case arose when William Evans, who was from Virginia, sued John Phillips in Georgia for breach of contract. The Georgia court dismissed the suit on grounds that it lacked jurisdiction over citizens from other states and could not exercise authority outside its borders. On appeal to the US Supreme Court, Chief Justice Marshall held that since Article III Section 2 Clause 1 of the Constitution grants federal courts exclusive original jurisdiction over cases between citizens from different states or foreign countries and their citizens or subjects; therefore any attempt by one state's court to take such cognizance would be unconstitutional as it would interfere with Congress' power under this clause to regulate interstate commerce disputes among individuals.

In Evans v. Phillips, 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 not have jurisdiction because it violated Article III of the Constitution which gives federal courts exclusive authority in cases between citizens of different states. However, Justice Story dissented from this decision and argued that there is no constitutional prohibition against allowing state courts to exercise concurrent jurisdiction with federal courts in such cases. He further argued that Congress has given some degree of power to state courts by authorizing them to hear certain types of diversity suits under its Judiciary Act and therefore should be allowed to do so here as well. In conclusion, Justice Story believed that allowing both federal and state courts concurrent jurisdiction would promote justice more efficiently than relying solely on one or the other for all matters concerning diversity suits between citizens from different states.