The Supreme Court case of Chicago Railway Equipment Company v. Merchants' Bank was a dispute between the two parties over a contract for the sale of railway equipment. The Chicago Railway Equipment Company (CRE) had entered into a contract with Merchants' Bank (MB) to sell railway equipment to MB. MB had agreed to pay CRE for the equipment in installments, but failed to make the payments as agreed. CRE then sued MB for breach of contract. The Supreme Court held that MB was liable for breach of contract and awarded CRE damages for the unpaid installments. The Court found that MB had failed to fulfill its obligations under the contract and that CRE had suffered a loss as a result. The Court also held that CRE was entitled to interest on the unpaid installments, as well as attorney's fees and costs. The Supreme Court's decision in this case was significant because it established that a party who breaches a contract is liable for damages, including interest, attorney's fees, and costs. This decision has been cited in numerous subsequent cases and has become an important precedent in contract law.

In the dissenting opinion of Chicago Railway Equipment Company v. Merchants' Bank, Justice Brewer argued that the majority's decision was wrongfully based on a technicality and failed to consider the actual facts of the case. He believed that when considering whether or not an instrument is negotiable, one must look at its substance rather than its form. In this particular case, he felt that it should be clear to all parties involved that there was an intention for payment from Chicago Railway Equipment Company (CREC) to Merchants' Bank (MB). Furthermore, he noted how MB had accepted CREC’s check in good faith without any knowledge of their dispute over ownership rights and thus should not be held liable for damages due to a technicality regarding negotiability. Therefore, Justice Brewer concluded by arguing against his colleagues’ ruling and instead proposed allowing MB’s claim against CREC as valid since they were unaware of any issues with regards to negotiability when accepting payment from them in good faith.