The U.S. Supreme Court case Federal Land Bank of Columbia, South Carolina v. Gaines in 1933 revolved around the issue of whether a federal land bank could be sued without its consent in state court for specific performance on a contract to convey land. The plaintiff, Gaines, had entered into an agreement with the defendant (Federal Land Bank) to purchase certain lands which were later refused by the bank due to irregularities found during title examination. When Gaines sought legal remedy through state courts demanding that the sale proceed as agreed upon, it raised questions about jurisdiction and sovereign immunity of federal entities operating within states. The Supreme Court ruled in favor of Federal Land Bank stating that as a federally chartered corporation performing governmental functions under Congressional legislation, it enjoyed immunity from lawsuits unless Congress explicitly waived this protection or consented to suit against itself - neither condition was met here. Therefore, even though operating within South Carolina's boundaries and engaging in commercial transactions like private corporations might do so ordinarily subjecting them to local laws and judicial processes; such activities did not strip away its inherent sovereignty derived from being part of federal machinery.

In the dissenting opinion for Federal Land Bank of Columbia, South Carolina v. Gaines, Justice Cardozo disagreed with the majority's decision to uphold a state law that allowed debtors to pay off their debts in depreciated currency. He argued that this ruling violated the contract clause of the Constitution by impairing contractual obligations and altering terms agreed upon by both parties at inception. According to him, allowing such changes would undermine confidence in contracts and destabilize commerce as it introduces uncertainty into business transactions. Furthermore, he contended that while states have power over local concerns like property rights or domestic relations, they should not interfere with matters involving interstate commerce or federal jurisdiction such as monetary policy which is under Congress' control according to Article I Section 10 Clause 1 of U.S Constitution.