The Caledonian case was a dispute between Dickey, the claimant, and The United States. At issue was whether or not Dickey had a valid claim to land in Louisiana that he purchased from Spain before it became part of the United States. The Supreme Court held that although Dickey's purchase of the land from Spain did not give him title to it under Spanish law, his possession of the property since 1795 gave him an equitable right to compensation for its value when it became part of the US. This decision established precedent for future cases involving claims by individuals who had acquired rights prior to US sovereignty over their lands. It also set forth principles regarding how such claims should be evaluated and compensated if they were found valid by courts.

In The Caledonian, the Supreme Court was tasked with determining whether a vessel named "The Caledonian" had been legally forfeited to the United States. The majority opinion held that it had not and that Dickey, the claimant of said vessel, should be allowed to recover damages for its seizure. However, Justice Johnson dissented from this ruling on two grounds: firstly, he argued that there was sufficient evidence in support of forfeiture; secondly, he contended that even if such evidence did not exist then Dickey would still have no right to compensation as his claim rested upon an illegal voyage which violated US neutrality laws. In conclusion therefore Justice Johnson believed that regardless of any lack of proof for forfeiture or illegality surrounding the voyage itself - both factors being necessary conditions for recovery - Dickey's claim must fail and thus no damages were due him by law.