Alexander v. The Baltimore Insurance Company was a landmark Supreme Court case that established the principle of federal judicial review in maritime insurance cases. In this case, Alexander sued his insurer for failing to pay him after he lost cargo on a voyage from Philadelphia to St. Thomas Island and back again. The lower court had ruled against Alexander because it found that the policy did not cover losses due to "perils of the sea," which were excluded by its terms and conditions. However, upon appeal, Chief Justice John Marshall reversed this decision and held that such exclusions could only be enforced if they were reasonable under general maritime law principles; otherwise, they would be deemed void as contrary to public policy or common sense. This ruling set an important precedent for future courts when considering similar disputes between insurers and their customers in matters related to marine insurance contracts

Justice Samuel Chase delivered the dissenting opinion in Alexander v. The Baltimore Insurance Company, arguing that the majority's decision was contrary to law and reason. He argued that a contract of insurance is an agreement between two parties for mutual benefit; thus, if one party fails to fulfill their obligations under the contract, then they should not be allowed to take advantage of it. In this case, he reasoned that since Alexander had failed to pay his premium on time as required by the policy terms, he should not be able to recover damages from The Baltimore Insurance Company when his ship was lost at sea due to a storm. Furthermore, Justice Chase noted that allowing such recovery would encourage people who fail in their contractual duties towards insurers and could lead them into further negligence or even fraud against other parties involved in similar contracts. Therefore, he concluded that justice demanded denying Alexander’s claim for damages against The Baltimore Insurance Company because it would set a dangerous precedent for future cases involving breach of contract claims related to insurance policies