In Maria de la Solidad de Arguello et al. v. The United States, the Supreme Court was asked to decide whether a Mexican land grant made in 1841 by Governor Juan Bautista Alvarado of California was valid and enforceable under U.S law after the Treaty of Guadalupe Hidalgo ceded California from Mexico to the United States in 1848. The claimants argued that their title should be recognized as valid because it had been issued before the treaty took effect, while the United States contended that any such grants were invalidated when sovereignty changed hands between countries. In its ruling, which favored Arguello and her co-claimants, the court held that all pre-treaty land grants must be respected unless they are specifically revoked or annulled by Congress or other competent authority; otherwise they remain binding on both parties regardless of changes in sovereignty over time.

In Maria de la Solidad de Arguello et al. v. The United States, the dissenting opinion argued that the land in question was not part of a Mexican grant and therefore should be considered public domain subject to appropriation by Congress under its power to dispose of public lands. The dissent further argued that even if it were found to be a valid Mexican grant, it would still remain subject to Congressional disposal as all grants made prior to 1848 had been extinguished by virtue of the Treaty of Guadalupe Hidalgo between Mexico and the United States which ended their war with each other. Finally, they contended that since no title could have vested in any individual or corporation until after Congress had disposed of such lands, no one could claim ownership over them without first obtaining an act from Congress granting them permission for such use or occupation.