In the case of Priest v. Trustees of the Town of Las Vegas, New Mexico (1913), a dispute arose over water rights in the town. The plaintiff, Mr. Priest, claimed that he had acquired certain water rights through his purchase of land from an individual who had previously been granted those rights by Spanish authorities before New Mexico became part of the United States. He argued that these pre-existing Spanish law grants should be recognized and enforced under US law as well. The defendants were trustees for the town who sought to use this same water source for public purposes such as fire protection and sanitation services - uses which would have interfered with Mr. Priest's claimed private usage rights. The Supreme Court ruled against Mr.Priest stating that when New Mexico was incorporated into U.S., it adopted American laws regarding property ownership including those related to water resources; therefore any prior claims based on old Spanish laws were no longer valid or enforceable. This decision established important precedent about how property and resource ownership is determined after territorial incorporation into U.S., particularly in areas where previous foreign legal systems may have operated differently than current American ones.

In the dissenting opinion for Priest v. Trustees of the Town of Las Vegas, New Mexico, it was argued that the majority's decision to uphold a local ordinance prohibiting pool halls within city limits infringed upon individual liberties and property rights. The dissenting justices believed that there was no compelling public interest or welfare concern justifying such an infringement. They contended that operating a pool hall is not inherently immoral or harmful to society and thus should not be subject to arbitrary restrictions by local governments. Furthermore, they maintained that if every municipality were allowed to enact similar ordinances based on subjective moral judgments rather than objective harm or danger, it would lead to an untenable patchwork of laws varying from town to town with potentially devastating effects on commerce and personal freedom.