In the 1908 case of Laborde v. Ubarri, the United States Supreme Court addressed a dispute over property rights in Puerto Rico. The plaintiff, Laborde, claimed ownership of certain properties based on Spanish law that was effective before Puerto Rico became a US territory. However, the defendant Ubarri argued that under American law which took effect after Spain ceded Puerto Rico to America following the Spanish-American War in 1898; he had rightful claim to these properties as they were not properly registered under his name by Laborde according to new laws. The court ruled in favor of Ubarri stating that upon becoming an American territory all unregistered lands automatically became public domain and could be acquired through purchase or other legal means from government authorities regardless of previous claims or possession under old Spanish laws unless such claims were officially recognized and recorded within two years after transfer of sovereignty.

In the dissenting opinion for the Laborde v. Ubarrri case, Justice Holmes disagreed with the majority's decision to dismiss the appeal on jurisdictional grounds. He argued that there was a substantial federal question involved in this case as it dealt with property rights under a treaty between Spain and United States following Spanish-American War of 1898. The issue at hand was whether or not certain lands were public or private under Spanish law before they became part of U.S territory after war, which would determine their ownership status now. This interpretation of an international treaty should be within Supreme Court’s jurisdiction according to him. Therefore, he believed that court had made an error by dismissing this appeal based on lack of jurisdiction.