In the 1906 case National Council of the Junior Order of United American Mechanics of the United States v. State Council of Virginia, Junior Order of United American Mechanics of the State Of Virginia, a dispute arose between two factions within an organization over control and use rights to property owned by that organization. The national council had expelled members from its state council in Virginia for alleged misconduct but those expelled members continued to operate under their original charter and claimed ownership over properties held by them prior to expulsion. The U.S Supreme Court ruled in favor of the national body, stating that when there is a division in an association or society which has resulted from differences among its members as to policy or conduct, if it does not result in dissolution then all property rights remain with those who continue loyal to its constitution and laws.

In the dissenting opinion for this case, Justice Harlan argued that the National Council did not have a right to control or interfere with the State Council's operations. He believed that each council was an independent entity and had its own rights and responsibilities under their respective constitutions. Furthermore, he contended that there was no provision in either constitution which gave one council authority over another. Therefore, he disagreed with the majority's decision to grant power to the National Council over state councils based on implied powers from ambiguous language in their constitutions. Instead, he asserted that any such powers should be explicitly stated within these documents themselves.