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Reasoning that there was no principled distinction between school boards and other municipal entities, the Court found that its many cases that held school boards liable were inconsistent with Monroe, and were a further indication that Monroe should be overruled. Justice Brennan drafted the majority opinion. Justice Powell was prompted to write by "the gravity of overruling part of so important a decision". Powell noted that the considerations of state decisis operated in both directions in this case, and that this case was different than the usual case where the Court is asked to overrule a precedent, reasoning that on the one hand, there are cases ruling that municipal entities are not "persons" under the statute, but on the other hand cases holding school boards liable.
Powell also wrote that there were still substantial line-drawing issues regarding what constitutes a policy or custom. In its brief against certiorari, the City argued that both stare decisis and legislative history supported upholding Monell. This resolution created a precedent that for the first time established local government monetary accountability for unconstitutional acts and created the right to obtain damages from municipalities in such cases.
This accountability is a legal doctrine known as Monell liability that has been further developed by subsequent case law. City of Cincinnati , the Court held that a single decision made by municipal policy maker can establish policy sufficient for Monell liability. Regarding policies of omission, the Court held in City of Canton v.
Harris that a municipality can be liable for a failure to train its employees when this failure constitutes a deliberate indifference to the person whose rights were violated. Brown , the Court held that a municipality can be liable for failure to screen if it is deliberately indifferent to the fact that the people the municipality was hiring were the kind of people with who would predictably commit this type of constitutional violation.
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