In the 1890 case of Gormley v. Bunyan, the United States Supreme Court addressed a dispute over land ownership in California. The plaintiff, Gormley, claimed that he had purchased a plot of land from Bunyan under an agreement that allowed him to make payments over time and take possession once all payments were made. However, before completing his payments, Gormley discovered that Bunyan had sold the same property to another party who was unaware of their prior agreement. When this third party attempted to evict him from the property on which he'd already started making improvements and investments based on their contract with Bunyan, Gormley sued for breach of contract. The court ruled in favor of Gormly stating that even though legal title remained with Bunyan until full payment was received by him as per their initial agreement; equitable title - or beneficial interest - passed onto Gromely upon entering into said contract itself due its executory nature (i.e., requiring future performance). Therefore it held that any subsequent sale by Bunyon without informing about this existing contractual obligation would be considered fraudulent towards both parties involved.

The dissenting opinion in the Gormley v. Bunyan case argued that the majority's decision was incorrect because it failed to consider important aspects of property law and rights. The dissenting justices believed that a person should have full control over their property, including its use and disposal, as long as they do not infringe on others' rights or violate public policy. They contended that if someone sells land with certain conditions attached (like restrictions on building), these conditions should be respected by future owners even if they were not part of the original sale agreement. This is because such conditions are often crucial for maintaining neighborhood character and value, which benefits all residents. Therefore, according to this view, Mr. Gormley had no right to build his proposed structure since it violated an existing condition placed on his land when he bought it from Mr.Bunyan.