The United States appealed a decision made by the Circuit Court of Rhode Island that denied them title to land in Narragansett Bay. The original owner, Eleazer Waterman, had died without leaving a will and his heirs were claiming ownership of the property. The Supreme Court ruled in favor of the appellees, finding that they were entitled to possession of the land as rightful heirs under state law. They also found that Congress did not have authority over this case because it was an issue involving private rights and state laws rather than federal ones. This ruling established precedent for future cases regarding inheritance disputes between states and individuals or corporations with regard to public lands granted by Congress.

The United States Supreme Court heard the case of The United States vs. The Heirs of Eleazer Waterman in 1840. In this case, the court was asked to determine whether or not a certain tract of land belonged to the state government or if it had been granted by Congress to an individual named Eleazer Waterman prior to its admission into the Union as a state. Justice McLean delivered a dissenting opinion in which he argued that although there were some ambiguities regarding title and possession, Congress had clearly intended for Mr. Waterman's heirs to have ownership over this particular tract of land when they passed legislation granting him exclusive rights thereto before admitting Ohio into the Union as a State. Furthermore, Justice McLean noted that even though subsequent laws may have altered these original terms somewhat, such alterations did not invalidate them entirely and thus should be respected by all parties involved in order for justice and equity prevail between them