In the case of Sage v. Louisiana Board of Liquidation, 1891, the U.S Supreme Court was tasked with determining whether a bondholder could sue a state without its consent under federal law. The plaintiff, Russell Sage, held bonds issued by the State of Louisiana and sued for payment after defaulting on them. However, he faced opposition from the defendant who argued that states have sovereign immunity which protects them from lawsuits without their consent based on Eleventh Amendment to United States Constitution. The court ruled in favor of Louisiana Board of Liquidation stating that it is not within federal jurisdiction to allow such suits against states unless they give explicit permission or waive their right to immunity. This ruling upheld principles established in earlier cases like Hans v. Louisiana (1890) where it was decided that citizens cannot sue their own state in federal court without its consent even if there's an alleged violation of rights protected by Federal laws or Constitution.

The dissenting opinion in the case of Sage v. Louisiana Board of Liquidation, 1891, argued that the majority's decision violated principles of contract law and infringed upon property rights. The dissenters believed that the state's action to convert bond interest payments from gold to paper currency constituted a breach of contract with bondholders who had purchased bonds under an agreement for repayment in gold. They contended this was not merely a matter of changing circumstances or economic necessity but represented an arbitrary alteration by one party (the state) without consent from another party (the bondholder). This unilateral change, they asserted, undermined fundamental tenets of contractual obligation and fairness. Furthermore, they suggested it amounted to deprivation or diminution of property without due process since it effectively reduced the value received by bondholders on their investment. Thus, according to them, such actions were unconstitutional as per Fifth Amendment protections against taking private property for public use without just compensation.