The U.S. Supreme Court case Garrozi v. Dastas in 1906 revolved around a dispute over property rights and inheritance laws between two parties of foreign nationality residing in the United States. The plaintiff, Garrozi, claimed that he was entitled to inherit his deceased brother's estate based on Italian law since they were both Italian nationals. However, the defendant, Dastas who was also an Italian national but married to the deceased man’s sister argued that under Louisiana state law where they resided at the time of death, she had rightful claim as next-of-kin through her husband. The court ruled in favor of Dastas stating that although there is generally respect for foreign laws regarding personal status and capacity matters such as marriage or legitimacy; when it comes to real property located within its territory however - local (state) law applies regardless of nationality or domicile status elsewhere. This decision reinforced principles underlying American federalism by upholding states' rights against potential encroachments from international legal norms while simultaneously affirming commitment towards respecting individual civil liberties via recognition for certain aspects concerning personal status/capacity derived from one's home country's legal system.

The dissenting opinion in the case of Garrozi v. Dastas argued that the majority's decision to uphold a lower court ruling, which denied an Italian citizen his right to sue for damages after being unlawfully detained by U.S. immigration officials, was incorrect. The dissenting justices believed that international law and treaties between Italy and the United States clearly established this right. They contended that any person within U.S territory is entitled to protection under its laws, regardless of their citizenship status or whether they entered legally or illegally. Furthermore, they disagreed with the majority's interpretation of "due process," arguing it should include not just procedural fairness but also substantive rights such as freedom from unlawful detention.