It was one of a series of cases resolving disputes over ships captured during the undeclared Quasi-War between the United States and France from 1798 to 1800.

[2] At the conclusion of the undeclared war with France a treaty was ratified that stated in part: Property captured and not yet definitively condemned or which may be captured before the exchange of ratifications (contraband goods destined to an enemy's port excepted) shall be mutually restored.

[3] David Jewett was authorized as commander of the Trumbull to capture any vessel sailing under the flag of France.

The Peggy was returned to Connecticut where the local courts ruled her a prize of war in September 1800.

[3] The court ruled that the treaty was applicable as law and should apply retroactively to all seized vessels whose sentence was not yet final.