In Schley v. Pullman Car Company, the Supreme Court of the United States was asked to decide whether a contract between the Pullman Car Company and the Schley Brothers was valid. The Schley Brothers had contracted with the Pullman Car Company to build a railroad car for the company. The contract stated that the Schley Brothers would be paid a certain amount of money for the car, but the Pullman Car Company refused to pay the full amount. The Schley Brothers sued the Pullman Car Company for breach of contract. The Supreme Court held that the contract between the Schley Brothers and the Pullman Car Company was valid and enforceable. The Court found that the Pullman Car Company had breached the contract by refusing to pay the full amount due to the Schley Brothers. The Court also held that the Schley Brothers were entitled to damages for the breach of contract. The Court's decision in Schley v. Pullman Car Company established that contracts are binding and enforceable, and that parties who breach contracts are liable for damages. This decision has been cited in numerous cases since then, and it remains an important precedent in contract law.

Justice Field delivered the dissenting opinion in Schley v. Pullman Car Company, arguing that the majority had misinterpreted the contract between Schley and Pullman. He argued that under California law, which governed this case, a party could not be held liable for damages if they were unaware of any breach of contract by another party. In this instance, he believed it was clear from both parties' testimony that neither knew about or intended to violate their agreement with each other; thus no liability should have been imposed on either side. Furthermore, Justice Field noted that even if one did assume there was a breach of contract here - as the majority had done - then only nominal damages would be appropriate since neither party suffered any actual harm due to its violation. As such, he concluded his dissent by urging reversal of the lower court's decision and dismissal of all claims against both parties without prejudice or costs being awarded to either side.