In the case of Gauzon v. Compania General de Tabacos De Filipinas, 1917, the U.S Supreme Court was tasked with deciding on a dispute over property rights in Manila, Philippines. The plaintiff, Gauzon claimed that he had purchased land from an individual who had acquired it through inheritance. However, the defendant company argued that they were rightful owners due to their purchase of a mortgage foreclosure sale conducted by Spanish authorities before American control of the Philippines. The court ruled in favor of Compania General de Tabacos De Filipinas stating that under international law and treaty obligations between Spain and America following the Spanish-American War (1898), existing property rights should be respected unless explicitly revoked or altered by new sovereign power - which wasn't done here. Therefore, despite changes in sovereignty from Spain to America at this time period for Philippines; previous legal transactions such as sales or transfers made under former rule remained valid.

In the dissenting opinion for Gauzon v. Compania General de Tabacos De Filipinas, it was argued that the majority's decision to uphold a lower court ruling denying plaintiff’s claim on grounds of laches (unreasonable delay in pursuing a right or claim) was incorrect. The dissenting justices believed that there had been no unreasonable delay by the plaintiffs in asserting their rights and thus, they should not be penalized for such alleged tardiness. They contended that under Spanish law applicable at the time of transaction, ownership could only be transferred through delivery of possession and since defendant never took possession from plaintiff after purchase agreement, title remained with plaintiff despite sale contract. Therefore, they opined that this case should have been decided based on principles of property law rather than equity jurisprudence related to laches doctrine as done by majority.