This US Supreme Court case involved the New Orleans Canal and Banking Company, appellants, and Josiah S. Stafford and Jenanetta Kirkland, his wife. The dispute arose when the Bank sought to foreclose on a mortgage given by Stafford for property in Louisiana. The lower court had found that the mortgage was invalid because it did not comply with certain provisions of Louisiana law regarding mortgages at that time; however, this decision was reversed by the Supreme Court who held that while there were some technical deficiencies in how it was executed under state law, these defects could be overlooked as they did not affect its validity or enforceability under federal common law. Furthermore, since no other party had been prejudiced by any irregularities in execution of the mortgage deed itself or its subsequent recordation according to state laws then those matters should also be disregarded as well.

In the dissenting opinion of New Orleans Canal and Banking Company v. Josiah S. Stafford and Jenanetta Kirkland, Justice Daniel argued that the lower court’s decision should be reversed because it was based on a misinterpretation of Louisiana law regarding mortgages. He noted that under Louisiana law, when a mortgagor is in default, they are required to pay all costs associated with foreclosure proceedings before any other creditors can receive payment from the proceeds of sale. In this case, however, he argued that since no such costs had been paid by either party prior to foreclosure proceedings being initiated against them by another creditor (the Bank), then those same costs could not be charged against their property after it had already been sold at auction for less than its full value due to insufficient bidding interest. As such, Justice Daniel concluded that there was no legal basis upon which the Bank could claim priority over other creditors in receiving payment from what remained after these charges were deducted from the total amount owed by Stafford and his wife following their mortgage default - thus making him believe reversal was necessary for justice to prevail in this matter.