Wallen v. Williams was a case heard by the United States Supreme Court in 1812. The dispute arose when John Wallen, an officer of the Bank of Columbia, sued William Williams for failing to pay on two promissory notes he had issued as security for a loan from the bank. In his defense, Williams argued that he should not be held liable because there were irregularities in how the bank conducted its business and that it did not have authority to issue loans or accept deposits under Maryland law at the time. The court found in favor of Wallen and ruled that even if there were irregularities with how the bank operated, they did not absolve Williams from his obligation to repay his debt since he had voluntarily entered into an agreement with them and accepted their terms without objection or protest at any point during their dealings together. This decision established precedent regarding contractual obligations between parties regardless of any potential legal issues surrounding one's actions prior to entering into said contract.

In Wallen v. Williams, the Supreme Court was tasked with determining whether a state court had jurisdiction to hear an action brought by a citizen of another state against a resident of that same state. The majority opinion held that the Constitution did not grant such authority and thus the suit should be dismissed. Justice Johnson dissented from this decision, arguing that it would lead to great injustice if citizens were denied access to justice in their own states simply because they resided elsewhere at the time of filing suit. He argued further that there is nothing in either federal or state law which prohibits suits between citizens of different states being heard in one particular forum; rather, he believed it was within Congress' power under Article III Section 2 Clause 1 to determine where such cases could be tried and decided upon according to its discretion. In conclusion, Justice Johnson maintained his belief that allowing suits between citizens of different states would promote fairness and justice for all parties involved regardless of their residency status at any given moment in time.