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http://en.wikipedia.org/wiki/Worcester_v._Georgia
Chief Justice john marshall laid out in this opinion the relationship between the Indian Nations and the United States is that of nations. He argued that the United States, in the character of the federal government, inherited the rights of Great Britain as they were held by that nation. Those rights, he stated, are the sole right of dealing with the Indian nations in North America, to the exclusion of any other European power, and not the rights of possession to their land or political dominion over their laws. He acknowledged that the exercise of conquest and purchase can give political dominion, but those are in the hands of the federal government and not the states.
The court ruled that the individual states, had no authority in American Indian affairs.