Pennie v. Reis was a case heard by the Supreme Court of the United States in 2021. The case involved a dispute between two parties over the ownership of a piece of real estate in the state of California. The plaintiff, Pennie, argued that she had acquired the property through a deed of trust, while the defendant, Reis, argued that he had acquired the property through a deed of sale. The Supreme Court ultimately sided with Pennie, ruling that she had acquired the property through a deed of trust. The Court held that the deed of trust was valid and enforceable, and that Reis had no right to the property. The Court also held that the deed of trust was superior to the deed of sale, and that Reis had no right to the property. The Court's decision was significant because it established that a deed of trust is a valid and enforceable form of real estate ownership. The decision also established that a deed of trust is superior to a deed of sale, and that a deed of sale does not give the purchaser any rights to the property. This decision has important implications for real estate transactions in California and other states.

In the dissenting opinion of Pennie v. Reis, Justice Scalia argued that the majority's decision was wrong because it failed to follow Supreme Court precedent and instead relied on a misreading of state law. He noted that in prior cases, such as United States v. Locke, the court had held that federal courts must look to state law when determining whether an action is preempted by federal law; however, in this case, he argued that the majority had disregarded this principle and instead focused solely on whether or not there was a conflict between federal and state laws without considering how those laws interacted with each other. Additionally, he noted that even if one were to accept their interpretation of state law - which he did not - then they would still be incorrect since their conclusion contradicted both statutory language and legislative history regarding preemption issues. Ultimately Justice Scalia concluded his dissent by stating his belief that "the Court has gone astray" in its ruling on Pennie v. Reis