In the 1896 case of Springville v. Thomas, the U.S Supreme Court ruled in favor of a city's right to impose taxes for public improvements that benefit its residents. The dispute arose when Springville City, Utah levied an assessment on property owned by Thomas and others to fund waterworks construction. The plaintiffs argued this was unconstitutional as it violated their rights under the Fourteenth Amendment - specifically regarding due process and equal protection clauses. However, Justice Edward Douglass White delivered the unanimous opinion of the court stating that such taxation is within a municipality's power if it benefits all inhabitants equally and does not infringe upon any individual’s constitutional rights. Therefore, since there was no evidence showing arbitrary or unequal treatment in tax imposition by Springville City, nor deprivation of property without due process of law; henceforth, they upheld lower courts' decisions dismissing plaintiff's complaints.

In the dissenting opinion for Springville v. Thomas, it was argued that the majority's decision to uphold a lower court ruling in favor of Thomas contradicted established legal principles regarding municipal liability. The dissenting justices contended that municipalities should not be held liable for damages caused by defects or obstructions in public streets unless there is proof of negligence on their part. They believed that the city had taken reasonable steps to maintain and repair its streets, thus fulfilling its duty as a municipality. Furthermore, they disagreed with the majority's interpretation of "negligence," arguing instead that it should refer only to actions (or lack thereof) directly under a municipality’s control rather than unforeseen accidents or natural occurrences beyond human control. This disagreement over definitions led them to conclude that upholding such broad interpretations could potentially expose cities and towns across America to an overwhelming amount of litigation and financial burden.