In the case of Heath v. Wallace, 1890, the U.S Supreme Court ruled on a dispute involving land ownership in California. The plaintiff, Heath, claimed that he had purchased land from an individual who had acquired it through a Mexican Land Grant before California became part of the United States. However, this grant was not confirmed by Congress until after his purchase. Meanwhile, defendant Wallace argued that he owned the same piece of property based on a patent issued by the United States government following its acquisition of California as per Treaty of Guadalupe Hidalgo in 1848 which ended Mexican-American War and transferred vast territories to US including present-day California. The court held that under international law and stipulations within Treaty itself all rights to private properties were preserved despite change in sovereignty unless explicitly stated otherwise or if there is any legal impediment against it. Therefore even though confirmation came later than purchase date but since original grant was made prior to transfer of sovereignty; title vested with original owner (and subsequently with Heath) rather than US Government (and hence Wallace). This decision reaffirmed respect for pre-existing property rights during territorial transitions between nations.

In the dissenting opinion for Heath v. Wallace, Justice Field disagreed with the majority's ruling that a state law could not interfere with federal bankruptcy proceedings. He argued that states have their own sovereignty and should be allowed to pass laws regarding property rights without interference from federal courts unless there is a clear conflict between state and federal law. In this case, he did not see any such conflict as both laws aimed at protecting creditors' rights in bankruptcy cases. Furthermore, he believed that allowing states to regulate these matters would promote uniformity in how bankruptcies are handled across different jurisdictions rather than creating confusion or inconsistency as suggested by the majority opinion.