The San Pedro -- Valverde case was a dispute between the United States and Spain over ownership of a ship. The claimant, Valverde, argued that he had purchased the vessel from Spanish authorities in 1793 and thus should be allowed to keep it. However, the US Supreme Court ruled against him on two grounds: firstly, because his purchase was made after Spain ceded Florida to the United States in 1783; secondly, because even if his claim were valid under Spanish law at that time (which it wasn't), American courts would not recognize such claims due to their own laws regarding property rights. Thus, despite Valverde's protests that he had been wronged by both countries' governments for denying him what he believed was rightfully his own property - namely The San Pedro - ,the court ultimately decided against him.

In The San Pedro -- Valverde case, the Supreme Court was asked to decide whether a Spanish grant of land in New Mexico could be recognized by the United States. Justice Story wrote a dissenting opinion arguing that while it may not have been possible for Spain to make such grants after cession of the territory to the United States, there was no evidence that this particular grant had been made after cession and thus should be respected. He argued that if Congress wanted to reject all pre-cession grants they should do so explicitly rather than relying on an implied rejection from their silence. Furthermore, he noted that since many settlers were already living on these lands when they were acquired by the US government it would be unjust and impolitic for them now to lose their homes without due process or compensation.