In the case of Fisher v. District Court of the Sixteenth Judicial District of Montana, in and for the County of Rosebud (1975), a Native American couple sought to adopt their grandchildren who were also Native Americans. The state court granted them temporary custody but refused to grant permanent adoption because it believed that under the Indian Child Welfare Act (ICWA), tribal courts had exclusive jurisdiction over child custody proceedings involving Indian children. The Supreme Court held that while ICWA did give tribal courts exclusive jurisdiction over such cases, this was not absolute and could be altered by agreement between states and tribes or if good cause existed. In this case, since there was no evidence that either condition applied, the state court should have deferred to tribal jurisdiction as required by federal law.

In the dissenting opinion for Fisher v. District Court of Montana, Justice William O. Douglas argued that the majority's decision to allow state courts jurisdiction over adoption proceedings involving Native American children was a violation of tribal sovereignty. He contended that such matters should be left entirely to tribal courts as they are internal affairs concerning members of an independent political community. Douglas emphasized that tribes have historically been recognized as distinct, self-governing entities and their rights to manage their own affairs should not be infringed upon by state governments or courts. Furthermore, he expressed concern about potential cultural insensitivity in non-tribal court decisions regarding Native American child custody cases due to lack of understanding or appreciation for native customs and values related to family structure and child rearing practices.