In Wilson v. Lenox and Maitland, the Supreme Court of the United States was asked to decide whether a state court had jurisdiction over a case involving citizens from different states. The plaintiff, Wilson, brought suit against two defendants in Virginia for breach of contract. Both parties were citizens of different states; however, only one defendant resided in Virginia at the time that suit was filed. The Supreme Court held that under Article III Section 2 Clause 1 of the U.S Constitution (the diversity clause), federal courts have exclusive jurisdiction when both parties are from different states regardless if one party resides within or outside the forum state at filing time. This decision established an important precedent regarding federal court's power to hear cases between individuals who reside in separate states and limited state courts' ability to exercise their own authority over such matters

In Wilson v. Lenox and Maitland, the Supreme Court was asked to decide whether a contract between two parties could be enforced if it had been made without consideration. The majority opinion held that such contracts were unenforceable because they lacked consideration; however, Justice Paterson dissented from this decision. He argued that the lack of consideration should not prevent enforcement of an otherwise valid agreement as long as both parties intended to enter into a binding contract at the time it was made. Furthermore, he noted that courts have traditionally recognized agreements based on moral considerations or promises in exchange for past services rendered even though no new legal obligation is created by them. Thus, Justice Paterson concluded that since there was evidence indicating both parties intended to create a legally binding agreement when they entered into their contract, it should be enforceable despite its lack of consideration.