In the 1892 case of Knox County v. Ninth National Bank, the U.S Supreme Court ruled in favor of Ninth National Bank. The dispute arose when Knox County issued bonds to fund railroad construction and later refused to pay them off, arguing that they were illegally issued due to a lack of public notice about their issuance. However, the bank had purchased these bonds without knowledge of any irregularities. The court held that even if there was an absence or insufficiency in public notice regarding bond issuance as required by state law, it did not invalidate the bonds nor absolve Knox County from its obligation towards innocent purchasers for value such as Ninth National Bank who bought them in good faith without any awareness about potential illegality or procedural lapses.

In the dissenting opinion for Knox County v. Ninth National Bank, Justice Brewer argued that the majority's decision was inconsistent with previous rulings of the court and could potentially lead to unjust outcomes. He contended that a county should not be held liable for bonds issued by its officials if those officials acted outside their authority or in violation of state law. According to him, it is unfair and unreasonable to hold taxpayers responsible for illegal actions taken by public officers without their knowledge or consent. Furthermore, he believed that this ruling would encourage corruption among public officials who might issue fraudulent bonds knowing they will be upheld as valid obligations against the county regardless of legality under state laws.