In the case of Chicago v. Tilley, the Supreme Court of the United States was asked to decide whether a city could be held liable for damages caused by a defective street. The plaintiff, Tilley, had been injured when his horse and wagon fell into a hole in the street. Tilley argued that the city was liable for his injuries because it had failed to maintain the street in a safe condition. The Supreme Court held that the city was liable for Tilley's injuries. The Court reasoned that the city had a duty to maintain the streets in a safe condition and that it had breached that duty by failing to repair the hole in the street. The Court also held that the city was liable for the damages caused by its negligence, even though the city had not been aware of the defect in the street. The Court's decision in Chicago v. Tilley established that cities can be held liable for damages caused by their failure to maintain public streets in a safe condition. This decision has been cited in numerous cases since then, and it has become an important precedent in the area of municipal liability.

Justice Field delivered the dissenting opinion in Chicago v. Tilley, arguing that the majority's decision was inconsistent with prior Supreme Court precedent and should be overturned. He argued that under existing law, a municipality could not impose taxes on property owned by non-residents unless it had been authorized to do so by its state legislature. The city of Chicago had attempted to tax certain real estate owned by Tilley, who was a resident of another state at the time; however, no such authorization from Illinois' legislature existed for this purpose. Justice Field noted that while municipalities may have broad powers over their own affairs within their respective states, they cannot exercise authority beyond what has been granted them through legislative action or constitutional provisions - thus making any attempt to tax out-of-state residents without explicit permission illegal and unconstitutional.