In Myer v. The City of Muscatine, the Supreme Court ruled that a municipal corporation cannot be held liable for damages caused by its negligence in failing to keep streets and sidewalks in repair. The plaintiff had sued the city after he was injured when his horse stumbled on an uneven sidewalk due to lack of maintenance. The court found that since cities are not legally responsible for such matters, they could not be held accountable for any resulting injuries or damage from their failure to maintain public areas. This decision established precedent which has been used ever since as a basis for determining whether municipalities can be held liable under similar circumstances.

In the case of Myer v. The City of Muscatine, the Supreme Court was asked to decide whether a city ordinance that imposed a tax on all persons engaged in selling goods and merchandise within its limits was constitutional. Justice Field delivered an opinion dissenting from the majority's decision which held that such ordinances were unconstitutional as they interfered with interstate commerce. He argued that while Congress had exclusive power over interstate commerce, it did not have exclusive power over intrastate or local trade and therefore could not interfere with state legislation regarding taxation for such purposes. Furthermore, he asserted that states had authority to regulate their own internal affairs so long as those regulations did not conflict with federal laws or policies concerning interstate commerce; thus, cities should be allowed to impose taxes on businesses operating within their boundaries without fear of interference from Congress. In conclusion, Justice Field believed this particular ordinance was valid under both state law and the Constitution since it only applied to businesses operating solely within Muscatine's jurisdiction and did not affect any other states' rights or interests in any way whatsoever