In the 1998 case between the State of New Jersey and the State of New York, a dispute over jurisdictional boundaries arose. The conflict centered around Ellis Island, an important historical site that served as an immigration station in the late 19th and early 20th centuries. Both states claimed ownership over this territory due to its significant cultural heritage value. After examining historical documents such as treaties and agreements dating back to colonial times, it was determined by the Supreme Court that while most of Ellis Island is technically located within New Jersey's borders according to geographical boundary lines, much of it falls under New York's sovereignty based on longstanding jurisdictional practices. Therefore, although geographically situated closer to New Jersey’s mainland than to any land belonging to New York State or City; for legal purposes part of Ellis Island remained within municipal limits established by compact between two States approved by Congress in 1834.

In the dissenting opinion for the case of State of New Jersey v. State of New York, 1998, Justice Stevens argued that historical evidence and original understanding should be given more weight in determining jurisdiction over Ellis Island. He disagreed with the majority's reliance on an 1834 compact between New Jersey and New York to determine sovereignty over newly created land on Ellis Island. Instead, he believed that a broader interpretation was necessary considering both states' history and their mutual intent when they agreed to share jurisdiction in 1834. Furthermore, he pointed out inconsistencies within the majority’s decision itself - while it granted sovereignty to NJ for most parts of Ellis Island due to its geographical proximity, it also allowed NY exclusive jurisdiction over some areas despite being further away from them than NJ is.