Smith v. Craft was a United States Supreme Court case that addressed the issue of whether a state court could enforce a contract that was made in violation of a state statute. The case involved a contract between Smith and Craft, in which Smith agreed to pay Craft a certain amount of money for the sale of a piece of property. The contract was made in violation of a state statute that prohibited the sale of property without a license. The Supreme Court held that the state court could not enforce the contract because it was made in violation of the state statute. The Court reasoned that the state statute was a valid exercise of the state's police power, and that the state had the right to protect its citizens from contracts that were made in violation of the law. The Court also noted that the state had the right to protect its citizens from contracts that were made without proper consideration. The Court's decision in Smith v. Craft established that state courts could not enforce contracts that were made in violation of state statutes. This decision has been cited in numerous cases since then, and it has been used to support the idea that state courts should not enforce contracts that are made in violation of the law.

Justice Field delivered the dissenting opinion in Smith v. Craft, arguing that the majority's decision was contrary to established precedent and would lead to a dangerous expansion of federal power. He argued that Congress had no authority under the Constitution or any other law to pass legislation granting exclusive rights over navigable waters within state boundaries, as this would be an unconstitutional infringement on states' rights. Furthermore, he noted that prior decisions by both state and federal courts had held that such exclusive rights could not be granted without violating existing laws regarding public use of waterways for navigation purposes. As such, Justice Field concluded that Congress did not have the power to grant Smith exclusive control over these waters and thus his claim should have been dismissed.