In Bank v. Sherman, the United States Supreme Court was asked to decide whether a bank could be held liable for a loan made to a third party without the bank's knowledge or consent. The bank had loaned money to a third party, who then used the money to purchase property from the plaintiff. The plaintiff then sued the bank for the money, claiming that the bank was liable for the loan because it had not taken any steps to protect itself from the third party's actions. The Supreme Court held that the bank was not liable for the loan because it had not taken any steps to protect itself from the third party's actions. The Court reasoned that the bank had no knowledge of the third party's actions and had not given its consent to the loan. The Court also noted that the bank had not taken any steps to protect itself from the third party's actions, such as requiring the third party to provide security for the loan. The Court concluded that the bank was not liable for the loan and that the plaintiff could not recover the money from the bank. The Court held that the bank had acted in good faith and had not taken any steps to protect itself from the third party's actions. The Court also noted that the bank had not been negligent in its dealings with the third party.

Justice Field delivered the dissenting opinion in Bank v. Sherman, arguing that the majority's decision was contrary to established precedent and would lead to a dangerous expansion of judicial power. He argued that it is not within the court's authority to determine whether or not an act of Congress is constitutional; rather, this determination must be made by Congress itself. Furthermore, he noted that if courts were allowed to make such determinations then they could potentially invalidate any law passed by Congress without having been given explicit permission from them first. Finally, Justice Field asserted that allowing courts to decide on constitutionality would give them too much power over legislative matters which should remain solely with elected representatives of the people.