In the 1997 case between the State of New Jersey and the State of New York, a dispute over territorial jurisdiction arose concerning Ellis Island. The island was historically used as an immigration station and is known for its symbolic representation of American immigration. While most people assumed that it belonged to New York, geographically it lies closer to New Jersey's shores. In this case, both states claimed sovereignty over different parts of the island based on historical agreements dating back to colonial times. After examining these claims in detail, including analyzing maps from various periods and considering past interstate pacts, the Supreme Court ruled that while some areas were indeed under New York's jurisdiction (such as those created by landfills), much of Ellis Island remained within New Jersey’s boundaries due to proximity reasons. Therefore, although physically connected through man-made structures like bridges or causeways with mainland NY territory (Manhattan), legally speaking part belongs also NJ state according their shared border in Hudson River waters surrounding Ellis Island.

In the dissenting opinion for State of New Jersey v. State of New York, Justice Stevens disagreed with the majority's decision to grant sovereignty over Ellis Island to New Jersey. He argued that historical evidence and past legal decisions supported a ruling in favor of New York. The 1834 compact between the two states had given jurisdiction over all islands in waters surrounding Manhattan to New York, including Ellis Island which was then only three acres large. Even though landfill later expanded it significantly, he believed this did not change its original status as part of NY territory under the compact agreement. Furthermore, he pointed out that for more than 150 years both states and federal government treated Ellis Island as part of NY without any objection from NJ until recently when financial interests arose due to tourism potential on historic site.