In Johnson v. Pannel's Heirs, the United States Supreme Court was asked to decide whether a state court had jurisdiction over a case involving land located in two different states. The plaintiff argued that because the land was situated in both Kentucky and Virginia, it should be considered part of one state for jurisdictional purposes. The defendant argued that each state should have its own separate jurisdiction over the matter. After considering both sides' arguments, the Supreme Court held that when land is situated across multiple states, those states must jointly exercise their power to determine which court has proper jurisdiction over any disputes concerning such property. This ruling established an important precedent regarding interstate jurisdictional matters and continues to influence modern legal decisions today.

In Johnson v. Pannel's Heirs, the Supreme Court was tasked with determining whether a deed of trust created by an individual in Virginia was valid under Kentucky law. The majority opinion held that it did not meet the requirements for validity and thus could not be enforced. Justice Story dissented from this decision, arguing that there were no clear legal precedents to support such a conclusion and that the court should have deferred to state laws on matters of property rights rather than making its own determination as to what constituted a valid deed of trust. He further argued that if states are allowed to pass their own laws regarding property rights then those laws must be respected by other states unless they conflict with federal law or public policy considerations. In his view, since neither had been violated here, Kentucky's interpretation should stand regardless of any perceived deficiencies in the document itself.