In the case of Tupino v. La Compania General de Tabacos De Filipinas, 1908, the U.S Supreme Court ruled on a dispute involving property rights in the Philippines during its transition from Spanish to American rule. The plaintiff, Tupino, claimed ownership over certain lands that were also claimed by La Compania General de Tabacos De Filipinas (a Spanish corporation). The court had to decide whether or not it could apply an old Spanish law which allowed for land possession based on uninterrupted and uncontested use for a certain period of time. Ultimately, the Supreme Court decided that this law was applicable under American rule as well since it did not conflict with any existing US laws or principles of justice. Therefore, they upheld lower court decisions favoring Tupino's claim over those lands due to his long-term usage and occupation.

In the dissenting opinion for Tupino v. La Compania General de Tabacos De Filipinas, it was argued that the Supreme Court should not have jurisdiction over this case as it involves a dispute between two foreign entities in a foreign land (the Philippines). The dissenting justices believed that U.S. courts should only exercise their power when there is an actual controversy involving American citizens or interests. They also pointed out that under international law principles, local laws and customs of the place where a contract is made generally govern its interpretation and enforcement - in this case, Spanish law should apply since both parties are Spanish corporations operating in the Philippines which was then under Spanish rule at time of contract formation. Therefore, they disagreed with majority's decision to apply U.S federal common law instead. Furthermore, they expressed concern about potential negative implications on diplomatic relations if U.S courts were seen as interfering with legal matters within another country’s jurisdiction without clear justification.