During the American Revolution, the Commonwealth of Virginia enacted legislation that allowed it to confiscate Loyalists' property. Here, the original suit was an action of ejectment brought in Virginia state court for the recovery of land in the state known as the Northern Neck Proprietary. A declaration in ejectment was served in April 1791 on the tenants in possession of the land. Denny Fairfax was a British subject who held the land under the devise of Lord Thomas Fairfax. Denny Martin was admitted to defend the suit and plead the general issue upon the usual terms of confessing lease, entry, and ouster. Martin agreed to assert only claim to the title. The facts being settled in the form of a case agreed to be taken and considered as a special verdict, the court, on consideration thereof, gave judgment in favor of the defendant in ejectment on April 24, 1794. From that judgment the plaintiff in ejectment appealed to the court of appeals. The Virginia state supreme court upheld the confiscation. It did not do so on the grounds that Virginia law was superior to U.S. treaties, but rather because it argued that its own interpretation of the treaty revealed that the treaty did not, in fact, cover the dispute. On review in Fairfax's Devisee v. Hunter's Lessee, 11 U.S. 603, the U.S. Supreme Court disagreed with this conclusion, ruling that the treaty did in fact cover the dispute, and remanded the case back to the Virginia Supreme Court, but the Virginia court then decided that the U.S. Supreme Court did not have authority over cases originating in state court:
Story first confronted the argument that federal judicial power came from the states, and therefore that the Supreme Court had no right to overrule a state's interpretation of the treaty without its consent. Story found that it was clear from history and the preamble of the Constitution that the federal power was given directly by the people and not by the states. Story then cited Article III, Section 2, Clause 2, showing a textual commitment to allow Supreme Court judicial review of state decisions.:
"In all Cases affecting Ambassadors, other public Ministers and Consuls, and those in which a State shall be Party, the supreme Court shall have original Jurisdiction. In all the other Cases before mentioned, the supreme Court shall have appellate Jurisdiction, both as to Law and Fact, with such Exceptions, and under such Regulations as the Congress shall make."
If the Supreme Court could not review the decisions of the highest state court, state courts would be excluded from ever hearing a case in involving a federal question. Thus, because it was established that the states had the power to rule on federal issues it must be true that the Supreme Court can review the decision, or the Supreme Court would not have appellate jurisdiction in "all other cases" as stated by the Constitution. Furthermore, the Supremacy Clause declares that federal interpretation trumps the state's interpretation. Story rejects concerns over State judicial sovereignty. Under Article I, Section 10 of the Constitution specific limits are placed upon the "sovereignty" of state governments. Under The Supreme Court could already review state executive and legislative decisions and this case was no different. Story then confronted the arguments that state judges were bound to uphold the Constitution just as federal judges were, and so denying state interpretations presumed that the state judges would less than faithfully interpret the Constitution. Story countered that even if state judges were not biased, the issue was not bias but uniformity in federal law. Furthermore, the legislative power to remove a case to federal court would be inadequate for maintaining this uniformity. Finally, Story applied these principles of judicial review to the decisions below and found that the state court's decision was in error. Story said the following in his judgment. The vote tally was 6 to 1. Johnson also gave a concurring opinion.