In the case of Shulthis v. McDougal, the Supreme Court ruled on a dispute over land ownership in Oklahoma. The plaintiff, Shulthis, had purchased land from an Indian tribe member who was allotted the property by Congress under certain restrictions to prevent exploitation of tribal lands. However, before these restrictions were lifted and full title could be transferred to non-Indians like Shulthis legally, he sold part of this land to McDougal. When he later tried to reclaim it arguing that his initial sale was void due to those federal restrictions still being in place at that time; McDougal countered stating that as per state law (Oklahoma), such sales are valid if made after three years from allotment even if federal restriction is not lifted yet. The court sided with McDougal ruling that while Federal law does indeed supersede State law generally; however when it comes specifically to matters involving transfer or alienation of property rights within its jurisdiction - states have authority unless expressly prohibited by Congress which wasn't done here thus making Oklahoma's laws applicable and hence validating sale between Shulthis & McDougal.

In the dissenting opinion for Shulthis v. McDougal, it was argued that the majority's decision to dismiss the case based on lack of jurisdiction was incorrect. The dissenting justices believed that there were substantial federal questions involved in this dispute over land rights and mineral leases which merited Supreme Court review. They contended that whether a contract is valid or not under state law can be a federal question if its determination involves the construction of an act of Congress or some provision of the Constitution. In their view, such issues should fall within federal jurisdiction because they involve interpretation and application of national laws rather than just local ones. Therefore, they disagreed with dismissing this case solely based on its connection to state property law matters without considering potential implications related to federal legislation or constitutional provisions.