In the case of Brandon et al. v. Holt, Director of Police for the City of Memphis, et al., 1984, the U.S Supreme Court ruled that a city could be held liable under Section 1983 for constitutional violations committed by its police officers. The plaintiffs were two individuals who had been shot and injured by an off-duty police officer during a traffic dispute in Memphis, Tennessee. They sued both the officer and his superior (Holt), alleging that their injuries resulted from policies or customs established by Holt which violated their civil rights under federal law (Section 1983). The District Court dismissed claims against Holt but found in favor of plaintiffs against the city on grounds it was responsible for actions taken as part of official policy or custom. This decision was reversed by Sixth Circuit Appeals court stating cities cannot be held liable under Section 1983 unless they directly caused violation through explicit policy decisions rather than mere negligence in training/supervision etc.. However, upon appeal to Supreme Court this ruling was overturned with majority opinion holding municipalities can indeed be considered "persons" within meaning of section 1983 hence are subject to liability when acting under color state law.

In the dissenting opinion for Brandon et al. v. Holt, Justice O'Connor argued that the majority's decision to allow a lawsuit against a city under Section 1983 of the Civil Rights Act was inconsistent with previous Supreme Court rulings and Congressional intent. She contended that Congress did not intend for municipalities to be sued under this law when it was passed in 1871 because they were not considered "persons" at that time. Furthermore, she pointed out inconsistencies between this case and Monroe v Pape (1961), where it was ruled that cities are immune from lawsuits under Section 1983 due to their lack of personhood status during its enactment period. Additionally, she expressed concern about potential financial burdens on local governments if they could be held liable for employees' actions without clear evidence of an official policy or custom causing constitutional violations.