In Louisiana v. New Orleans, the Supreme Court of the United States was asked to decide whether the City of New Orleans had the right to levy taxes on property owned by the State of Louisiana. The State of Louisiana argued that the City of New Orleans had no authority to tax its property, as it was not within the City's jurisdiction. The Supreme Court held that the City of New Orleans did have the right to levy taxes on the State's property, as the City had the power to tax all property within its jurisdiction. The Court further held that the City's power to tax was not limited to property owned by individuals, but extended to property owned by the State as well. The Court also held that the City's power to tax was not limited to property located within the City's boundaries, but extended to property located outside the City's boundaries. The Court concluded that the City of New Orleans had the right to levy taxes on the State's property, and that the State of Louisiana had no right to challenge the City's authority to do so.

In the case of Louisiana v. New Orleans, the Supreme Court was asked to determine whether a state could be sued without its consent in federal court by another state or citizen of another state. The majority opinion held that states do not have immunity from being sued in federal court and can be subject to suit if they are found liable for damages caused by their actions. However, Justice Field dissented from this ruling on the grounds that it violated principles of sovereign immunity established under Article III Section 2 of the Constitution which provides that “the judicial power shall extend to controversies between two or more States” but does not provide any authority for suits against one State by citizens or other States. He argued further that allowing such suits would create an imbalance among states as some may become targets for litigation while others remain immune due to lack of resources necessary to defend themselves in court proceedings. As such, he concluded that Congress should pass legislation granting states immunity from lawsuits brought against them in federal courts unless expressly authorized by law.